“We Didn’t Build for Valuation, We Built for Survival”: A Conversation with Sashi Reddi, Founder of AppLabs

Long before SaaS, venture hype, and unicorn dashboards, Sashi Reddi was building one of Hyderabad’s earliest globally respected technology companies. In this conversation with BharatCEOs, the AppLabs founder reflects on disciplined growth, bootstrapping realities, and what today’s founders often overlook.

Q: AppLabs was founded in a very different era. What was entrepreneurship like in Hyderabad then?

Sashi Reddi:
It was fundamentally about survival, not storytelling. There was no venture capital ecosystem to lean on, no social media validation, and very little forgiveness for mistakes. If you lost a client, payroll was at risk.

Hyderabad back then forced you to be realistic. You built only what customers were willing to pay for, and you learned cash discipline very early.

Q: AppLabs focused on software testing when it wasn’t considered glamorous. Why that choice?

Sashi:
Because it was necessary. Most software companies underestimated quality and reliability. Testing was seen as secondary, but clients cared deeply about outcomes.

We didn’t chase what sounded exciting—we chased what was valuable. That decision gave us credibility with global clients and predictable revenue.

Q: You scaled AppLabs globally and later exited. How do you view today’s obsession with valuations?

Sashi:
Valuations are opinions, not outcomes. Cash flow, customer trust, and execution discipline are real.

I worry that some founders today optimise for fundraising rounds rather than building resilient businesses. Capital should amplify fundamentals, not replace them.

Q: How did Hyderabad influence the company’s culture and leadership style?

Sashi:
Hyderabad encourages low-ego leadership. Teams here respect competence more than titles. That shaped our culture—quiet, accountable, and execution-focused.

We never tried to imitate Silicon Valley. We built an Indian company serving global clients, on our own terms.

Q: What mistakes do first-time founders commonly repeat today?

Sashi:
Over-hiring before product-market fit. Confusing press coverage with progress. And underestimating operational complexity.

Technology is the easy part. Managing people, cash, and customer expectations—that’s where companies actually fail.

Q: What advice would you give younger founders building in Hyderabad now?

Sashi:
Use the city’s strengths. Hyderabad gives you time, talent, and cost efficiency. Don’t waste that advantage by chasing noise.

If you build something solid here, the world will come to you.