Revolutionizing WordPress: AI-Powered Website Building by Armenia’s 10web
In the world of website building, generative AI has made a significant impact on improving productivity. From web design tools like Wix to bootstrapped startups like Relume, there are numerous options available that allow users to generate web designs simply by describing their desired outcome. Now, a company called 10web based out of Armenia is entering the race with its own AI-powered website building platform, claiming to have a unique edge.
The Challenge of WordPress
10web’s platform focuses on generating websites built with WordPress, a widely-used content management system known for its complexity, especially for beginners. Unlike closed-source solutions like Wix and Squarespace, WordPress is open-source, meaning it requires more advanced web design skills and additional backend tasks, such as managing hosting services.
Despite its challenges, WordPress still dominates the website building space, powering an estimated 40% of all websites on the internet, thanks to its customization options. In second place is Shopify, which has gained popularity among vendors looking to create online stores without relying on Amazon.
Introducing Generative AI to WordPress
To address the usability issues of WordPress, 10web’s engineering team in Yerevan has integrated generative AI models like Llama 2, GPT-4, and Stable Diffusion into its platform. By leveraging these AI models, 10web aims to make WordPress more intuitive and user-friendly. However, building such a tool for WordPress is no easy feat. According to Arto Minasyan, co-founder of 10web, architecturally designing a platform for WordPress requires a robust hosting infrastructure and managed services to ensure security, backups, and uptime for each website.
Minasyan is confident that their focus on solving WordPress’s usability will pay off due to the sheer size of its open-source community, which consists of two million developers. Since its founding in 2017, 10web has achieved positive cash flow and currently serves around 20,000 paying customers. In total, 1.5 million websites have been generated using 10web’s platform.
Monetizing Strategy and Growth
10web employs two monetization strategies: charging fees per website or based on traffic. The company also plans to introduce a payment system that allows users to charge their customers, with 10web taking a commission fee. Currently generating $5 million in annual recurring revenue, 10web aims to reach $25 million in ARR by the end of the following year.
Minasyan attributes part of the company’s growth to its favorable location in Armenia, which provides access to abundant and affordable engineering talent. In recent years, Armenia has emerged as a budding tech hub, with its capital city, Yerevan, producing the country’s first unicorn, Picsart. Many Armenian startups, including 10web, employ engineers domestically while hiring marketing and business development teams in the U.S. This strategy allows them to leverage the affordable talent pool in Armenia while benefiting from a presence in the U.S., which can be advantageous for fundraising.
Armenian Startups Targeting the U.S.
According to Minasyan, “99% of Armenian startups target the U.S. market.” While smaller funding rounds can be raised from Armenian venture capitalists, larger sums for seed funding or Series A rounds typically require startups to venture into the U.S. market. By having a presence in the U.S., Armenian startups can compete with global giants like Google, Amazon, and OpenAI while accessing the best talent available.
Armenia’s growing tech industry is proving that innovative startups can emerge from unexpected places. With 10web’s AI-powered website building platform aiming to revolutionize WordPress by making it more user-friendly, the company is on track to become a significant player in the website building market. As the company continues to grow and expand its services, it will be interesting to see how it competes with established players like Wix and Squarespace, and whether its AI integration truly sets it apart from the competition.