How IPOs Affect the Valuation of Consumer Tech Stocks?

IPO = Entry Point, Not Exit Plan

– Brings transparency and new capital
– Valuations often based on future potential
– Retail & institutional excitement drives short-term prices

How IPOs Impact Valuation

– Anchors and QIBs set early price expectations
– Loss-making startups may get inflated valuations
– New peers in listed space reshape sector multiples

Post-IPO Trends to Track

– Profitless tech stocks face steep corrections
– Lock-in expiry = insider selling pressure
– High expectations lead to sharp de-rating on misses

Valuation Traps to Avoid

– Paying 20x revenue for no profit path
– No moat or high marketing spends = low stickiness
– Pre-IPO pump not matched by earnings

Investment Insights

– Wait 1–2 quarters post-IPO for real performance
– Compare peer valuations in global + Indian context
– Look at path to breakeven, not just GMV/user base