Figma moves toward US IPO after failed $20 billion Adobe merger

Figma, reportedly cash flow positive, is evolving beyond a design tool into a comprehensive platform for digital product development, leveraging team collaboration features and AI-powered design tools to expand its market presence

Signalling a bold move towards going public, Figma, the innovative cloud-based design platform, has quietly filed for an initial public offering (IPO) in the United States. This comes over a year after Adobe’s $20 billion acquisition of Figma was blocked by antitrust regulators in both the UK and the EU, derailing one of the largest software startup acquisitions in history.

The deal, initially hailed as a potential game-changer for both companies, was halted in December 2023 due to concerns that the merger would harm competition in the design software market. As a result, Figma has charted its own course toward becoming a public company, leveraging its strong brand and rapidly growing user base.

Figma, founded in 2012 by Dylan Field, has become a crucial tool for digital designers worldwide, providing a platform to create, share, and test design concepts for websites, apps, and other digital products. Major tech companies such as Google, Adobe, Uber, and Spotify rely on Figma for their design and prototyping needs. As the platform's popularity continues to surge, Figma has expanded its offerings, adding features like AI-enhanced collaboration tools to further cement its position in the market.

Valuation soars amid IPO buzz

In 2024, Figma reached a $12.5 billion valuation in a secondary market sale, where early investors and employees were able to liquidate some of their stakes. Despite market turbulence and economic uncertainty, which have prompted other tech startups to delay their IPO plans, Figma is seen as a strong candidate for a successful debut.

“Even amid the broader market’s volatility, Figma’s proven track record, strong revenue model, and large customer base make it an attractive IPO prospect,” said Kaidi Gao, a senior analyst at PitchBook.

The company is reported to be cash flow positive, and with a broader platform for team collaboration and AI-powered design tools, Figma is positioning itself as not only a design tool but a comprehensive platform for digital product development.

Though the timing and valuation of Figma’s upcoming IPO remain undisclosed, the filing suggests that the company is gearing up for a public debut, joining the ranks of other high-growth startups testing the waters of the IPO market.

Also Read: Adobe is eyeing for high growth with Figma