Aneesh Reddy, co-founder and vice chairman, Capillary Technologies
Image: Selvaprakash Lakshmanan for Forbes India
Aneesh Reddy has seen many ups and downs in the more-than-15 years building Capillary Technologies as a loyalty platform provider that processes more than seven billion transactions a year for 400 brands around the world. In a recent interview, he sat down with Forbes India to talk about his experience of asking a trusted senior advisor to take on the role of full-time CEO, and earlier this year stepping back in himself. Edited excerpts:
Q. About two years ago, you asked Sameer Garde, who at that point was an independent member on your board and advisor, to become full-time CEO. What were you hoping for?
When we were looking to improve execution, I sought advice from investors like Rajan [Rajan Anandan, MD, Peak XV Partners]. One of the things he said about Sameer stuck in my mind… that in his entire career he must have missed a couple of quarters, the rest he hit—which is insane execution day in and day out.
As a founder, I had the vision and the team, but I lacked the execution discipline. Sameer came on board and quickly started helping us with setting clear goals and structuring OKRs [objectives and key results]. His consistency in hitting goals, even in tough quarters, impressed me and taught me the importance of sticking to clear objectives.
I also learnt a lot from his approach to feedback. Sameer’s feedback was detailed and structured—he’d always start with the positives, followed by areas for improvement, and then what went wrong. It was clear, actionable and incredibly valuable. Over time, I realised that these small but consistent practices, like focusing on a few key goals and providing structured feedback, make a huge difference when done right and repeatedly.
Q. Does anything come to your mind in terms of what worked well on Garde’s watch as CEO?
We’d been aiming for consistent 5 percent Ebitda growth as a machine for many years now. Many startups get stuck at break-even and struggle to push past it. For the last two years, we’ve gone from close to zero to achieving 10 percent free cash flow. Now, we have a machine in place that can deliver an additional 5 percent Ebitda each year.
I’m confident we can grow from 10 percent to 15 percent, 20 percent, even 25 percent, we now have a path to that over the next three to four years.
This progress comes from super disciplined execution, with clear goals tracked weekly in our leadership meetings. Our ambition has always been high, but the real shift in execution rigour came with Sameer.
He would set four main goals each year, and we worked through two cycles of that. We had tough but productive conversations about focus. His approach helped us realise that executing a strategy thoroughly before tweaking it builds confidence and long-term success.
Q. What do you think is easy as a founder, and what are some tough decisions or changes?
As a founder, what’s tough for me is seeing people who’ve been with you for years, like key team members, move on. It’s hard because you’re emotionally invested in the business, and you can’t help but question what you could have done differently. For a CEO, that’s easier because they’re more detached and used to people coming and going.
But for a founder, when something goes wrong—whether it’s a person leaving or the business facing challenges—it feels personal. It’s not just a professional issue; it’s an emotional one too. The tough part also comes when you’re running out of money, and it’s no longer just a business problem but a deeply personal one. Activities like vipassana meditation have helped deal with this better, over the years.
The easy part, though, is that as a founder, people tend to take what you say more seriously. The title itself brings a certain level of trust and respect, which makes things easier, even if you’re still figuring things out.
Also read: What Aneesh Reddy is getting right about Capillary Technologies’ push in the US
Q. Do you think founders are also automatically equipped to be CEOs or is there a learning curve?
As both a founder and a CEO, I believe the chief executive’s role is fundamentally about deep execution.
Founders often have an inherent advantage in this role because they’ve lived through the highs and lows of building a company, giving them unique insights into its context and challenges.
However, execution is what ultimately drives success. Take Apple, for example: After Steve Jobs, the company still thrived because they integrated innovation into a disciplined execution process. While founders are well-positioned to lead, it’s essential to evolve personally.
I learnt a lot from Sameer, who led Capillary for a time—simple, logical principles that transformed my approach. A great CEO is one who is willing to unlearn and learn, adapting continuously to the demands of the role. Without this mindset, even a founder won’t succeed as a CEO in the long run.
Q. You’re an angel investor in many startups. What CEO traits do you look for in founders?
I believe two key traits are essential for success. First, a CEO must be externally facing—constantly engaging with the world, customers and competitors. A CEO who is uncomfortable with external conversations will hit a roadblock. Even introverted engineers or product folks can evolve, but if you’re unwilling to work on this, you won’t thrive in the role.
The second crucial trait is the ability to set clear, consistent goals and align the team around them. In my early days, I struggled with constantly shifting direction, which created confusion. A good CEO needs to stick to a strategy and ensure everyone understands and follows it, even when new trends or ideas emerge.Many founders fall short here, as they get distracted by the latest buzz, like AI (artificial intelligence), instead of maintaining focus. Ultimately, a CEO needs to be both externally engaged and internally aligned to lead effectively.
(This story appears in the 13 December, 2024 issue
of Forbes India. To visit our Archives, click here.)