Zerodha co-founder Nikhil Kamath on Thursday said that while the need for next-gen companies cannot be questioned, their valuations are driven by psychology and mass hysteria. Further, he stated that it is precisely due to this psychology that retail companies head out for an initial public offering. The Zerodha co-founder was speaking to the business channel, ET Now on the much-awaited IPO of the fintech platform, Paytm.