IPO FOMO: How to Spot the Next Nykaa or Zomato Before the Crowd

Over the last few years, the Indian stock market has seen a spate of multiple giant IPOs, including tech-led juggernauts such as Zomato, as well as consumer-focused behemoths such as Nykaa. Not only did these companies attract a huge amount of interest but also these companies provided a chance for the early investors to enjoy their growth story. With the year 2025 nearing, investors are already looking out for what the next major IPO in India will be. But since so many different companies are lining up, how do you know how to distinguish actual potential instead of mere spin?

The blog will guide you on what to look out for about probable future unicorns even before their emergence into the headlines and not to be a victim of IPO FOMO—Fear Of Missing Out.

IPO FOMO? What is it?

IPO FOMO is the fear of missing out that comes to investors in case a new company is going public and looks like the next hot thing. In most cases, individuals will invest not out of research on the business but due to everybody doing it. FOMO may result in rushed judgments, but investment in a successful IPO needs level-mindedness and methodical investment.

Learn from the Past: What Stuck Out About Nykaa and Zomato?

Both Nykaa and Zomato had demonstrated indicators of a solid core before enjoying the household name status:

Nykaa enjoyed positive unit economics, a loyal customer base, and an online and offline presence.

Zomato was already changing into a prime mover in the food delivery ecosystem with an ability that is supported by strong data analytics and investor attention.

The two businesses were characterized by scalable business models, huge addressable markets, and early-mover advantage in their respective industries. These also are some of the main things that you should consider in search of such IPO opportunities.

5 Tips to Spot the Next Unicorn Before the IPO Craze

1. Learn about the Business Model

Does the company address a problem in the real world? Does it have something exclusive? Businesses that innovate or transform ancient industries are likely to do better in the long term.

2. Examine Market Dimension & Opportunity

A unicorn tends to cater to a large market or high-growth market. As for industries, such as EV, fintech, or healthtech, their rise is bound to reach enormous numbers, so make sure not to lose sight of upstarts in these fields.

3. Check the Financials (Even Before They Are Making Money)

Although not every company that goes to IPO is profitable yet (such as Zomato at the time of the listing), check for signs of rising revenue, decreasing losses, and positive unit economics. There is also the issue of burn rate and cash.

4. Team and Investor Validation

A well-established track record and support of renowned VCs or private equity firms usually show potential in stability and growth.

5. Measure customer loyalty and brand value.

The good indication is a powerful, active customer base. Consider such metrics as application downloads, traffic on the site, retention, and buzz on social media.

Do not Tread Just where the Crowd Is Going, Follow where the Data Leads

When an IPO gets popular on Twitter, or 50 times oversubscribed, it is easy to hop on the bandwagon. Intelligent investors depend upon research. An IPO decision that is well researched stands a better chance of paying off as compared with one that is dominated by hype.

To the overwhelmed investor the IPO investment guide India which is designed keeping in focus the new investor could be quite useful. Such guides tend to indicate what is involved in reading the red herring prospectus (RHP) of a company, interpreting financials, and interpreting risks.

Guidance/ Resources and Tools to Assist You in Making Decisions

Draft red herring Prospectus- (DRHP): Before you consider investing in the company, always read prospectus of the company as it will clue you on objectives, risks and finance of the company.

Financial Newsstands: Daily read websites and forums that monitor the most prominent upcoming IPOs that India 2025 will introduce.

IPO Watchlists: There are stock trading websites and Apps such as Zerodha, Groww or Angel One, which allow you to see and get an alert on upcoming IPOs before they launch.

Discussion Forums:  Forums such as Reddit, Quora, and Moneycontrol may be used to provide a community perspective, and they can be useful, especially in the current situation; however, one must exercise caution when considering the biased viewpoint.

Concluding Remarks: Invest Wisely Not Quickly

Few people have enough money to go on blind and follow IPOs so you may lose, but taking time and doing some work you have the chance to determine high potential companies before they are overcrowded by the crowd. As a retail investor or someone new in the game, learning how to find unicorns prior to their IPO could become your ticket to long-term prosperity.

Until 2025, be watchful and up to date with IPO stocks that are believed to be the best until 2025. Although not all IPOs will be Zomato and Nykaa, an intelligent and data-driven strategy will provide the advantage that you require to invest successfully.

Note: IPO investment is at risk of the market. A certified financial advisor should always be consulted prior to making investment.