Armenia's 10Web Launches AI-Powered Website Builder for WordPress Users

Generative AI: Transforming Website Building and User Experience

Generative AI is revolutionizing productivity across various sectors, with website creation being a standout example. An array of innovative tools now enables users to create web designs simply by describing their vision through prompts. Established platforms like Wix and emerging startups such as Relume are leading the charge. Now, 10Web, a company based in Armenia, is entering the market with a distinct advantage.

10Web allows users to swiftly generate WordPress websites—known for their versatility but often challenging for beginners—using just text prompts. Unlike Wix and Squarespace, which are closed-platform solutions, WordPress is open-source. This means that while it offers extensive customization options, it usually requires more advanced web design skills and does not include built-in hosting services, leaving users to handle various backend tasks.

Currently, approximately 40% of all websites on the internet are powered by WordPress, thanks to its robust customization capabilities, according to w3techs. Following closely behind is Shopify, which has gained traction as direct-to-consumer ecommerce flourishes, allowing vendors to establish their online stores without relying solely on Amazon.

To enhance the usability of WordPress, the engineering team at 10Web in Yerevan has integrated generative AI models like Llama 2, GPT-4, and Stable Diffusion into its website creation platform. Creating this tool required substantial development efforts. “Architecturally, building a platform for WordPress is complex,” noted 10Web co-founder Arto Minasyan, who also heads Krisp, a startup that utilizes machine learning to eliminate background noise from audio.

“You need a strong hosting infrastructure and a managed service for security, backups, and uptime. Each website is essentially an isolated instance, which presents significant challenges,” he added. “In contrast, when working with a closed-source solution like Wix or Squarespace, you only need to build one backend and generate pages for each site.”

Minasyan is optimistic that improving WordPress’s user experience will ultimately yield significant benefits, largely because of its vast open-source community, which boasts two million developers. Founded in 2017, 10Web operates profitably with around 20,000 paying customers, including small-to-medium businesses that might manage hundreds of websites. To date, 1.5 million sites have been created using 10Web.

The company has two primary monetization strategies: charging per website and based on traffic. Plans are underway to implement a payment system that will enable users to charge their customers, allowing 10Web to earn a commission on transactions.

Currently, 10Web generates $5 million in annual recurring revenue and anticipates reaching $25 million in ARR by the end of next year, according to Minasyan. He attributes this growth partly to the company's strategic location in Armenia, where there is a wealth of affordable engineering talent.

“In Armenia, AI talent is approximately four times less expensive than in the U.S., yet we have access to top-quality AI expertise,” the founder explained. “In contrast, web builders in California face competition from giants like Google, Amazon, and OpenAI, making it harder to attract the best talent.”

Armenia's burgeoning tech hub in the capital has produced its first unicorn, Picsart, providing a valuable blueprint for emerging startups. Despite being a relatively small economy, Armenian entrepreneurs have historically sought opportunities in the U.S. They often hire engineers in Armenia to leverage local tech expertise while staffing marketing and business development roles in the U.S., a strategy employed by 10Web’s 70-person team. Establishing a presence in the U.S. can also facilitate fundraising efforts.

“99% of Armenian startups target the U.S. market,” Minasyan said. “For fundraising below $1 million, Armenian VCs can be sources of support. However, to secure a few million in seed funding or tens of millions for Series A funding, you will need to approach U.S. investors.”