Canva Acquires Kaleido: Background Removal Now Easier

Canva Acquires Kaleido, the Company Behind remove.bg and Unscreen

Kaleido, the developer of a user-friendly background removal service for both images and video, has been acquired by the rapidly expanding digital design platform, Canva. The financial details of the acquisition remain undisclosed, but industry speculation suggests a valuation nearing nine figures.

The Rise of Kaleido and remove.bg

Founded in 2019, Kaleido initially gained prominence with remove.bg. This tool offered a remarkably quick, straightforward, and free solution for background removal from images. It quickly resonated with users needing efficient image editing without the complexity of software like Photoshop.

The company subsequently launched Unscreen late last year. This innovative tool extended the same ease of use to video background removal, a significantly more challenging technical undertaking. Its simplicity and effectiveness made it a prime candidate for acquisition by a larger entity.

Image Credits: Unscreen

Strategic Expansion for Canva

This acquisition was announced concurrently with Canva’s purchase of Smartmockups, a product mockup generator. These simultaneous acquisitions signal a substantial expansion of Canva’s product offerings.

According to Benjamin Groessing, co-founder and CEO of Kaleido, the company was entirely self-funded from its inception. “We completely bootstrapped Kaleido with no investors involved from day one,” he stated in a press release. “This acquisition wasn’t driven by financial necessity, as we have been profitable since the beginning, but rather a strategic alignment on multiple fronts.”

Future of the Brands

Kaleido has indicated that the Kaleido brand, and particularly Unscreen, are expected to be maintained following the acquisition. The name 'Unscreen' is considered highly suitable as a product name even under Canva’s ownership.

Reports from German news sources, Die Presse and Der Brutkasten, suggest the acquisition price places it among the largest Austrian tech exits. While the exact figure remains confidential, estimates point towards a valuation approaching $100 million.

Image Credits: Kaleido

The Kaleido team appears highly satisfied with the outcome. Notably, the celebratory image used to announce the acquisition was created using their own products.

This acquisition strengthens Canva’s position in the design market by integrating powerful and accessible background removal technology directly into its platform.