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Tectonic X Day Zero

E-commerce is ripe for disruption and Tectonic is leading the charge

Invest with Day Zero in Tectonic

Tectonic transforms sluggish and slow Shopify stores into highly optimised and lighting fast store frontends without any compromise on the user experience.

Day Zero is backing Tectonic's seed round, and we're extending a unique opportunity to a select few. If you're an operator who can add strategic value to this e-commerce revolution, we want you on board.

The Problem

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The Silent Killer of E-commerce: Speed

In the digital marketplace, speed isn't just a feature—it's survival. Yet, most Shopify stores are stuck in the slow lane, bleeding revenue with every passing second and drowning in a sea of apps.

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The Illusion of 'Good Enough'

Many Shopify merchants believe their stores are 'fast enough.' They're wrong. Analysis of 400 Shopify stores reveals a shocking truth:

The median store takes a staggering 22 seconds to become fully interactive.

Even the initial visual load takes 4.9 seconds.

71.4% of stores are unnecessarily bogged down on mobile.

Compare this to Amazon's 12 seconds or eBay's 9.5 seconds, and the competitive disadvantage becomes painfully clear.

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The App Avalanche

Shopify's ecosystem boasts over 13,000 apps (Backlinko), promising to solve every conceivable e-commerce problem. But this abundance comes at a steep cost:

The average Shopify store spends $316.03 on apps alone—four times the cost of their basic subscription.

Each app adds an average of 300ms to page load time.

47% of Shopify stores have installed 6 or more apps.

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The Cost of Slow

This isn't just about numbers—it's about lost opportunities:

Every second delay drops conversion rates by 17%. (Store Leads)

70% of consumers admit page speed influences their buying decisions. (Store Leads)

Search engines penalize slow sites, pushing stores further down in results.

In essence, slow, complex Shopify stores are actively driving customers away and hiding from those who might find them.

The Technical Debt Trap

Shopify merchants are unknowingly accumulating massive technical debt:

The average store could shed over 500KB just by optimizing images for mobile.

Render-blocking resources cost an average of 1.23 seconds in load time—an eternity in the digital realm. (Store Leads)

Yet, most merchants lack the technical expertise to address these issues, leaving them trapped in a cycle of underperformance and escalating costs.

A Market Crying for Revolution

The e-commerce landscape is evolving at breakneck speed. Shopify's gross merchandise volume hit $235.91 billion in 2023 (Backlinko), but individual stores are being left in the dust. There's an urgent need for a solution that can transform these sluggish, complex storefronts into high-performance, revenue-generating machines—without requiring merchants to become technical experts or app addicts.

“ It’s so bad at this point that you can’t start a new Shopify store without 5-6 apps on an average, to top that off if you are adding high res images that makes things more weird. All of this factors in the page speed” ~ Marc, RedCat Racing

“The most important priority for us to optimise our page speed, we are reaching out to all our app partners and working on it actively with out own dev team as well. We are willing to remove anything from our stack that comes in the way of performance” ~ Alice, CEO, Protein Works ( 80M/year in sales)

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Tectonic: Ultra-fast, self-improving online stores for Shopify.

Tectonic is not just another app in the crowded Shopify ecosystem. It's a comprehensive solution that addresses the two critical challenges facing Shopify merchants today: speed and growth.

The Tectonic Shift: Speed Meets Growth

Tectonic transforms sluggish and slow Shopify stores into highly optimized and lightning-fast storefronts without any compromise on the user experience. Crucially, merchants retain all their features and functionality while gaining significant speed improvements. Checkout this demo:

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1. Unification for Speed

Tectonic replaces the fragmented frontend of typical Shopify stores with a unified, blazing-fast interface:

- Supports all platforms: Android App, iOS App, Mobile Web, and Desktop - Eliminates the need for multiple speed-sapping apps - Reduces page load times from 22 seconds to under 4 seconds

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2. Built-in Growth Engine

Instead of relying on dozens of separate apps, Tectonic integrates essential growth features directly into its platform:

- Search & Recommendations - Loyalty, Rewards & Referrals - Up-sell & Cross-sell - Advanced Promotions & Coupons - Video Commerce - And many more...

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3. The Power of AI: Autonomous Commerce

Tectonic doesn't just stop at unification and speed. Its AI-powered platform continuously analyzes store performance, customer behavior, and market trends to optimize every aspect of the e-commerce experience:

- Pricing AI Agents - UX AI Agents - Retention AI Agents - Content AI Agents - Discovery AI Agents

This creates a "self-driving" online store that constantly adapts to maximize sales and customer satisfaction, allowing merchants to focus on their products and business growth.

Tectonic's vision of Autonomous Commerce is to give the power of hundreds of analysts, growth engineers, and data scientists that giants like Myntra and Amazon hire, and democratize that for the larger independent e-commerce ecosystem.

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The Tectonic Promise

By choosing Tectonic, Shopify merchants can expect:

Dramatically improved page load speeds

Simplified store management without sacrificing functionality

Integrated growth tools that eliminate the need for multiple apps

AI agents that are constantly improving the UX and the copy of the store for higher conversions

A competitive edge in the fast-paced world of e-commerce

Tectonic isn't just an upgrade—it's a complete reimagining of what a Shopify store can be. Fast, smart, and primed for growth, Tectonic-powered stores are ready to dominate the e-commerce landscape.

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TAM and ICP

Tectonic is targeting Shopify brands with annual sales ranging from $1M to $50M, representing a substantial market opportunity:

Large Accounts ($20M - $50M/year):

Approximately 1,000 accounts

Annual Contract Value (ACV): $150K - $1M

Medium Accounts ($5M - $20M/year):

Approximately 5,000 accounts

ACV: $50K - $150K

Small Size Accounts ($1M - $5M/year):

Approximately 50,000 accounts

ACV: $20K - $50K

This represents a total revenue opportunity of approximately $2.5B.

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GTM Plan

Three-Pronged Approach:

1. Inside Sales 2. Partner Network 3. Shopify App

Core Strategy:

Offer Tectonic Growth Stack through zero-cost, zero-risk, zero-effort trials

Target brands with $100K-$500K monthly sales

Aim for $100K-250K Annual Contract Value (ACV) clients

Key Actions:

Showcase faster, cloned versions of prospects' sites in all sales channels

Founder-led sales with demo websites and A/B testing

Build partnerships with marketing and CRO agencies

Launch free Growth Insights App on Shopify

Long-Term Goal:

Catalyze account expansion over 24-36 months, growing alongside successful clients

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Traction

Tectonic has demonstrated remarkable growth since its launch in January 2024, achieving $500k ARR in just a few months. This rapid success is a testament to the platform's value proposition and market fit.

Key Metrics:

$135k ARR booked

$390k ARR in pilots

Total of $500k ARR achieved within months of launch

Customer Success Stories:

TheLabelLife ($1.5M annual sales): 45% Revenue Per Visitor Growth

Ohsogo (SEA) ($1.8M annual sales): 27% Revenue Per Visitor Growth

Includ ($2M annual sales): 39% Revenue Per Visitor Growth

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Competitive Landscape

In the rapidly evolving e-commerce optimization space, Tectonic stands out as a unique and powerful solution.

Tectonic's Unique Position:

Only AI-native frontend platform for Shopify brands

Combines platform-level solutions with advanced AI capabilities

Key Competitors:

Shopify Hydrogen: Native solution, but lacks AI integration

Shop Circle: App aggregator, not a comprehensive platform

Yotpo: Focused on specific Shopify apps

Shogun: Page builder, limited in scope

Nosto: Experience AI, but not a full frontend solution

Tectonic's Competitive Edge:

Comprehensive platform approach

Advanced AI integration for continuous optimization

Tailored specifically for Shopify merchants

Combines speed optimization with growth features

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Team

Tectonic is led by a seasoned team with deep expertise in e-commerce, AI, and scalable technologies.

Neelesh Soni - CEO

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Ex-CPO at Virgio (valued over $150M)

Director of Product at Myntra ($3B GMV)

Ex-Flipkart ($30B GMV)

2x Founder with 10 years of e-commerce leadership experience

Expertise in AI products for cataloging, pricing, and promotions

Managed promotions budget of $2B

Nishant Khurana - CTO

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Ex-CTO at Virgio (valued over $150M)

Director of Engineering at Myntra

Experience at Flipkart, Bloomberg, Yahoo

15 years of experience in large-scale software systems and AI products

Expertise in retail technologies

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Round Details

Tectonic is raising $1M at $10M post

Here’s the participation breakdown :

Nandan Nilekani Family Office: 300k

Ratio Ventures: 250k

Grayscale: 250K

Golden Sparrow: 110k

Builders Fund: 25k

Angels: 65k

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Thank you so much for reading all the way through. If you have any feedback or thoughts on the memo and how we can make this better. Please write to us at rahulr@dzero.vc, we will definitely write you back and incorporate the feedback.

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