The Indian IPO landscape has been a fascinating space, especially with the emergence of tech-first consumer companies carving their niche. Recent initial public offerings (IPOs) from names like Zomato, Nykaa, and Paytm have set both inspiring and cautionary tales. Now, as Lenskart and Groww prepare to step into this spotlight, there’s a lot they can glean from what worked—and what didn’t—in these high-profile IPOs.

Firstly, Zomato’s IPO stands out as a success story that beautifully combined solid business growth with a compelling narrative. Zomato went public in July 2021 with a price band of Rs 76 per share and witnessed an overwhelming subscription, reflecting strong investor interest. On its debut, Zomato shares surged over 80%, underscoring market confidence bolstered by its leadership in the food delivery space and aggressive expansion plans. The company’s storytelling centered on a market leader in a rapidly growing segment, with clear potential for continued dominance. This narrative helped Zomato capitalize on momentum from previous funding rounds, creating significant excitement that translated into real market gains.

Nykaa’s IPO, while initially a blockbuster—with its valuation reportedly crossing Rs 1 lakh crore at launch—highlighted the volatility in public markets. Nykaa came with the allure of being a dominant e-commerce player in beauty and personal care. Initially lauded, Nykaa’s stock later experienced pressure in the market, struggling to maintain its initial highs. This points to the challenge of sustaining hype if the post-IPO performance or broader market sentiments don’t align perfectly. However, the Nykaa IPO also proved the importance of profitability metrics and growth prospects. Nykaa’s steady revenue growth and early profitability formed a strong backbone, yet the valuation and market conditions tested investor patience.

Paytm presents the most cautionary tale among the three. Its IPO was one of the most talked-about in recent years, but the public listing was met with a significant discount from the issue price on the very first day, with shares listing at a 40% lower price. Paytm’s struggle in the post-IPO period was due to multiple factors, including broader market conditions, questions about its long-term profitability, and perhaps a valuation that was deemed too aggressive initially. Still, the company has shown resilience, with stock rebounding notably over time, though it remains below IPO levels. Paytm’s journey underscores how critical it is to balance investor expectations, fundamental financial health, and timing in the public marketplace.

For upcoming IPOs like Lenskart and Groww, the lessons are clear:
– Authentic and compelling storytelling tied to market leadership and growth potential can create strong investor engagement, as seen with Zomato.
– Profitability and clear path-to-profit matter enormously, especially in a market that is becoming more discerning, a point Nykaa’s IPO highlighted.
– Valuations need to be realistic, and expectations managed carefully, a challenge faced head-on by Paytm’s IPO.
– Post-IPO, maintaining investor confidence through transparent communication, steady financial performance, and adapting to market conditions will be crucial.

Lenskart, now turning profitable with robust revenue growth in the eyewear segment, is positioning itself attractively, but the market will watch closely how it justifies its valuation and growth story to investors. Groww, as a fintech platform, faces similar scrutiny where trust, market traction, and profitability metrics will be under the microscope.

In conclusion, the IPO market in India is maturing, and while the excitement around tech-enabled consumer companies remains high, investors are becoming more critical and data-driven. The stories these companies tell must be backed by solid fundamentals and realistic growth trajectories to sustain success beyond the initial listing day. For Lenskart and Groww, weaving these lessons into their IPO journey can make the difference between a fleeting sparkle and long-term value creation in the public markets.