Ishendra Agarwal

I recently stumbled upon a very new D2C sneaker brand – Comet, and couldn’t help but share my thoughts 👟 The Indian sneaker market is growing rapidly at 8% CAGR, and here’s why: 1. Low per capita spend: At just $18, India’s per capita shoe expenditure is 72x lower than China and 30x lower than the US. Rising disposable incomes and a growing youth population make this untapped market ready to explode. 2. Sneaker craze: Sneakers have evolved from functional footwear into symbols of style and self-expression, driven by global trends. The market is still dominated by giants like Nike, Adidas, New Balance, Bata, and Campus. You might be wondering how can anyone compete with these big players, right? Well, that’s where our hero, Comet enters the story with one design, one price, and a purely D2C approach. Result? A ₹160 Cr valuation in just 2 years, proving themselves as a true homegrown competitor. How did they pull off this magic? 1. Narrow-to-Wide SKU approach: They began with one perfected sneaker design and multiple color options. By limiting their range, they could invest in R&D, ensuring a high-quality product customers love. 2. Affordable Uniform Luxury Pricing: Positioned in the mass-premium segment at ₹4299, they hit the sweet spot between premium quality and affordability. 3. Community Building: Instead of just selling shoes, they built a movement. Their story-based designs have created a loyal fanbase that promotes them on social media like brand ambassadors. 4. Purposeful Design: Each sneaker features a bold, minimalist design with storytelling, all manufactured in-house for top-notch quality. On top of this, certain avenues that I feel Comet can explore in the future are: 1. Shop-in-Shop Concept: Did you know that 70% of sneakerheads prefer in-store purchases? Comet can leverage a shop-in-shop model at multi-brand sneaker outlets like Superkicks, VegNonVeg, and Hype to capture this offline traffic and increase visibility. 2. Upsell Sneaker Care Kit: This would enhance the customer experience and attract consumers who value preserving their sneakers' appeal for longer. 3. Customized Color Variants: Comet could attract sneakerheads who love exclusivity by offering personalized color variations at a premium, driving brand loyalty and hype in the community. This shows how two sneakerheads - Utkarsh Gupta and Dishant Daryani are building a startup out of their passion. What are your thoughts on Comet and the Indian sneaker market? Also, I’d love to know what’s on your sneaker wishlist right now. For me, it’s the Comet Lagoon! Special thanks to Ankit Sanghvi for the nudge to write on LinkedIn. Hope to be much more active here! 🚀 #Sneakers #Comet #Startup

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Q-Commerce overtaking traditional e-commerce? Currently we are seeing a big boom in terms of the different SKUs being sold in Quick commerce apps like Zepto, Blinkit, etc. - Atomberg Technologies 's fans - Sony's PS5 - Samosa, Chai and what not - Digital Gold from Jar! Zepto is in talks to raise $300m for its broader ecommerce play. While Swiggy is preparing to file for an IPO this year, incumbent Flipkart is readying its entry into quick commerce. Zomato has invested $240 million in Blinkit over the last one year. Taking a step back, the lines between quick commerce and traditional e commerce have started to become increasingly blurred with QCom pretty much catering to every needs! Also, multiple reports suggest that QCommerce can potentially become bigger than traditional e commerce in India!  Case in point : According to Goldman Sachs, the valuation of Blinkit is greater than Zomato's core food delivery biz! Non-grocery boom in Q-Commerce: Categories including beauty, toys, health and electronics are witnessing robust sales growth on quick-commerce platforms overall. While the overall base for the new categories is still small, aggressive expansion by these players is starting to ensure a dominant presence for these categories. Plus AOV is higher which also comes with better margins, making it a win-win! Case in point: Zepto - 2x sales MoM in segments such as toys and electronics accessories - Beauty category expanded 3x QoQ - ~15% of Zepto’s $1.2bn annualised gross sales currently comes from non-grocery products (Source: Goldman Sachs) For several D2C quick commerce has become the fastest growth channel as well as the platform with highest customer engagement This is definitely a positive for the consumers and the Q-Commerce players, but is everything on the up and up?   As the demand for space on quick-commerce platforms skyrockets, niche D2C cos in segments like FMCG, beauty and personal care, and health and fitness are agreeing to pay a 30-45% commission on sales, besides shelling out on advertising and discounting on these Q-Com platforms. On top of the commissions, brands are also regularly spending around 20% of their total sales on ads on the platforms, and discounting their products by about 20-25% (totaling 60-70% revenue!). This is in stark contrast to the 10-20% commission that large FMCG cos pay these platforms reflecting the intense competition for visibility. The brand's scale and comparison with competitors are crucial considerations when it comes to new listings. On the positive side, smaller D2C brands have seen 40-60% total revenue coming from Q-Commerce compared to ~10-20% from traditional ecommerce, which is surprising! Essentially, Q-com currently has a BIIIG Bargaining power against new D2C brands and can essentially make or break their businesses! Is this sustainable on the long run? #ecommerce #quickcommerce #india #zepto #businessmodel #d2c #startups #LIPostingChallenge

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From Seed to Series B in less than 3 years Foxtale, an Indian D2C skincare brand, recently announced its $15M (Rs 125 Cr) Series B funding round. It raised $18M (Rs 150 Cr) in this round, but $3M out of this $18M were secondaries where existing shareholders sold their equity to new investors. The firm raised Rs 125 Cr ($12M) in fresh capital at a Rs 790 Cr ($96M) post-money valuation. This translates into a 12.5% dilution which is low for Series B rounds. The founders didn't have to dilute 20–25% equity because they got a high valuation. While the round size of Rs 125 Cr is average (neither large nor small) for a Series B startup in #India, the company's growth is spectacular. It was founded just 3 years ago in 2021. It raised its Seed of Rs 5.5 Cr in December 2021 and Rs 35 Cr Series A in June 2022. Skincare is a crowded category in India. Foxtale sells sunscreens and moisturisers where the competition from Indian and foreign brands is intense. So, how did Foxtale raise so much #money so quickly? The answer lies in Growth. VCs love fast-growing companies. Within 3 years, Foxtale's gross revenue run rate (Current Month's Revenue x 12) touched Rs 250 Cr. This gives us a valuation multiple of 2.7x which falls in the current market range of D2C valuations In India. Post-Money Valuation = Rs 790 Cr Fresh Capital Raised = Rs 125 Cr Pre-Money Valuation = 790 –125 = Rs 665 Cr Gross Revenue Run Rate = Rs 250 Cr Current Monthly Revenue = 250 / 12 = Rs 20Cr Valuation Multiple = 665 / 250 = 2.7 Its FY24 revenue was Rs 172Cr, more than 12 times its FY23 revenue. While the company burnt a lot of capital to achieve this, a Rs 172Cr revenue in its third financial year and Rs 20 Cr monthly revenue within 3 years is excellent #growth. The management also claims it's closer to EBITDA profitability, but I don't usually read too much into such claims because all #founders claim it. Nevertheless, the investors must be fine with the current burn to invest more money at an attractive valuation. Foxtale's high retention rate (More than 50% of orders are from existing customers) and a high share of website sales (More than 50%) convinced the investors that it's a good company to back. Most D2C brands rely on marketplaces for a majority of their sales. I agree with their hypothesis because skincare and body care are a crowded category in India. Dozens of #startups and FMCG companies sell hundreds of products. It's challenging for a new D2C brand to grow quickly even through cash burn. IMO, Foxtale has found its PMF for its existing products (Sunscreem and Moisturiser) in its current market. Its growth will depend upon how well it takes its existing products to newer markets and sells new products (Body care). It seems like an interesting company to follow. P.S. We are doing our next Founder Fundraising Workshop on the 22nd & 23rd of June. It's an 8-hour programme for first-time founders who want to raise #venturecapital.

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The e-commerce startup Meesho has raised $275 million in a new funding round, pushing its valuation to approximately $3.9 billion. This funding, part of a larger round expected to exceed $500 million, includes secondary transactions. Notable investors like WestBridge Capital and Norwest Venture Partners are participating in this round, joining Meesho's impressive list of backers, including Meta, Fidelity, Peak XV, Prosus Ventures, B Capital, and SoftBank. However, Meesho faces increasing competition, with Amazon India recently launching Bazaar, a special store featuring affordable fashion and lifestyle products. Despite this, Meesho's focus on an asset-light model and lower fulfillment charges has helped it capture nearly half of India’s annual 3PL e-logistics shipment. For the latest secondary coverage and trading SaxonWeber | ShareWell #secondaries #saxonweber

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Who exactly is losing market share in the hotly contest grocery commerce? I thought it must be the now-not-so modern retail, but I'm not so sure. Zepto raised $665 Mn at a valuation of $3.6 Bn, and is in talks to raise $250 Mn more. And their cofounder and CEO Aadit Palicha recently commented that they can beat DMart - Avenue Supermarts Ltd on GMV in the next 12-18 months. Swiggy Instamart also is growing, and Blinkit is likely to be more valuable than their owner Zomato itself - so they are all doing well, even if Dunzo isn't. Sure, no idea what JioMart Digital is doing, but deep pockets. Same with Tata Digital and their weird assortment forced to converge on Neu. bigbasket.com is trying to unlearn and relearn, and it just might. And Flipkart Grocery and Amazon Fresh are also upping their game - launching faster deliveries, discounts, improved fill rates, and selection. So I wonder if it is the modern-trade players? The likes of More Retail Private Limited, Spencer's Retail, STAR BAZAR, and SPAR Retail that are suffering? The nearest Spencer's to me is definitely a sore sight, now reduced to a shell of it's former glory - I think they aren't even replenishing inventory now. And we all know what happened to Big Bazaar - Future Retail. But Dmart itself isn't doing half bad - with pareto presence in just 23 cities, and no presence in UP (except NCR), Bihar, and West Bengal, they have considerable headroom, still. And they haven't yet quite solved for ecommerce, so while The Ken says that they are lost, they may find their way, eventually? I also don't think that the real consumption is growing, if at all, it may even shrink with the K-growth. Thus, some one _is_ losing share. And if it is not modern trade, then is it the regional chains? The single kiranas? The corner-store? The hand-cart? I'm not entirely sure because this data is hard to organize, and get. Would you know? Image created by AI in Microsoft Bing Copilot.

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Who would invest in founders who have wasted $50M? Koo, an Indian microblogging platform, recently shut shop after raising $50M in capital. Everyone has their views on why Koo failed. IMO, the biggest reason behind its failure was a lack of PMF (Product Market Fit). Koo spent much money on marketing and didn’t build a product people wanted. It kept harping on nationalism, a Twitter for Indians, made in #India. This approach failed. However, this doesn’t mean Koo’s founders aren’t smart or intelligent. I wrote in an earlier post that we shouldn’t be surprised if Koo’s founders raise fresh capital for a new startup. To many of us, this might seem grossly unfair. Millions of smart, hardworking founders are struggling to raise capital while investors are backing failed founders who have wasted millions of dollars. How is that fair? It confirms the widely held belief that the #venturecapital industry is broken and corrupt where a few people with the right connections get all the capital while others don’t see a dime. It shows that the VC industry is a closed group, a cabal where who you know matters more than anything. While these are just complaints, most people who criticise VCs don’t understand how startup investing works. VCs welcome failures. They embrace them because they know failures are inevitable. When VCs invest in 20 #startups, they know 15 will fail. The goal is to invest in startups that can give them a 100x return. Failures are part of the game. They are unavoidable. The aim is to back founders who can build such 100x return companies. Hence, failures are not looked down upon in the VC industry. It’s similar to the American culture where society appreciates the people who take risks, and it easily accepts personal bankruptcies that result from this risk-taking approach. There’s no taboo in failing in the USA and the VC industry. I’m sure Koo’s founders have learnt from their mistakes. It’s an expensive mistake and not everyone is so lucky to have this luxury to spend $50M on their education. ;) However, most VCs will back Koo’s #founders because these founders know how to raise capital and they know how to not build and scale tech companies. Their past failures have improved their chances of future success. In the VC industry, Failure is Good.

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Lenskart.com recently received a new round of funding from Temasek and Fidelity Investments. If I were to analyze the reasons behind this success from the lens (pun intended) of retail operations, it's no surprise why this brand is scaling so well.  . Here are the top 5 reasons why Lenskart is an exemplary D2C brand mastering retail 👇👇👇 . . . #retailinnovation #Lenskart #retailstoredesign #storeofthefuture #retailtrends #experientialretail #retailcollaboration #D2Cretail #Lenskart #Funding #RetailSuccess #D2C #CustomerExperience #TechInnovation #ProductFocus #ValueShopping #RetailStorytelling #IntuitiveDemos

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Sujith Nair, Beckn's WhatsApp-averse, badminton-loving chief mover and shaker, gave us a peek into the world's first # e-commerce protocol. Imagine if Colgate wanted to sell a lot of toothpaste, would it open separate exclusive stores on every street? NO! Instead, it ensures its products are available in all stores where people come to shop, and not just toothpaste. Similarly, Beckn is a way for an online business to make its products and services available on other stores (popular daily-use consumer apps) instead of setting up its own store (its own consumer app) and waiting for customers to come in droves! The Beckn Protocol underpins Open Network For Digital Commerce (ONDC) and is a universal translator for e-commerce platforms. We would normally call it the Rosetta Stone for digital services, but now we have BHASHINI 😉 . It allows disparate systems to "speak" to each other seamlessly. The Beckn Protocol has become a verb in the tech world. "Just Beckn it!" has become a common phrase among developers when discussing open-source solutions for digital commerce. In fact, we like it so much that we are using Beckn use cases as our episode artwork (instead of our normal groovy cover art) to spread the word in our own little way. Some may even argue that the yellow and black in the artwork denote open mobility networks (read taxis) 😀. The even more nerdy might catch the movie reference in the title 🎬. So, is it an app? Is it an aggregator? Is it a platform? No. It is a Super Capability - #decentralised and #open. Listen, learn and use. sujith nair | Pramod Varma | Sanjay Purohit | Shankar Maruwada | Shireesh Joshi | T Koshy | Namma Yatri | FIDE | Antler | Bingepods (Ideabrew Studios) | OpenExO | Thinkers360 | IBM Alumni | Microsoft Alumni Network | The RSA (The royal society for arts, manufactures and commerce) | World Economic Forum | Digital India Corporation | nasscom | Abhishek Singh | Nilesh | Sheetal https://lnkd.in/dydrjnbU

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Thanks Bismah and Inc42 Media for the insightful coverage and deep dive into the vital role of operator VCs! Bismah's thoughtful analysis underscores the growing need for operator VCs in today's startup landscape. As an operator VC , I've witnessed firsthand how founders increasingly value more than just capital. They seek partners who bring operational expertise, strategic guidance, and an extensive network to the table. These elements are crucial for driving sustainable growth and navigating the complexities of scaling a business. At GrowthCap Ventures , we understand the unique challenges faced by early-stage startups, which is why we prioritize offering not just funding, but also hands-on support and access to our extensive network. Together, we're empowering founders to realize their vision and build transformative businesses. #OperatorVC #StartupEcosystem #Gratitude

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SCOOP: Urban Company has turned profitable at PBT level (profit before tax) on a consolidated basis in the last month. The development will potentially smoothen its public listing plan which is likely to happen in 2025. My story:

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🚀 Swiggy Set to Make Waves with ₹11,300 Crore IPO: Key Details and Market Implications 🌐 Swiggy, India's food delivery giant, is set to go public with an IPO launching on November 6, 2024, aiming to raise around ₹11,327 crore (~$1.35B). Shares will be priced at ₹371-₹390 each (around $4.64), with trading expected to start on November 13, 2024. IPO Highlights: Price Range: ₹371-₹390 per share Funds Allocation: Expanding logistics and quick commerce operations This IPO is launching amidst rising tech-driven competition in India’s market. By securing capital, Swiggy plans to advance its quick commerce capabilities, aiming to gain a strategic edge over competitors like Zomato. Market Impact: Swiggy’s IPO offers a unique investment opportunity with strong growth potential, balancing between established dominance in food delivery and quick commerce expansion. Investor Insight: With a grey market premium around ₹25, sentiment is optimistic. As Swiggy steps into the public sphere, it's poised to redefine India's fast-paced delivery ecosystem. #IPO #SwiggyIPO #Investment https://lnkd.in/eyHRRPXh

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Announcing: Antler Fastrack to Residency - MUMBAI Edition (for founders in Mumbai / Pune / Ahmedabad / Surat) 2 weeks back we announced the first version of Fastrack to Residency through a warm intro to stay true to our promise on delivering faster to the most exceptional founders in Bangalore! We had an overwhelming response of 250+ warm referrals from other VCs, operators, serial founders and were introduced to a vibrant bunch of founders building across bath fittings, offline senior care clubs to CBDCs powered international payments. Of this, we met with 22 founders (and have 30+ we are speaking to virtually given limitation of slots) and offered the residency to 5 teams and individuals within 48 hours! Seeing such a promising response from the ecosystem, we are now coming to Mumbai and hope to see an even bigger outcome! If you are an exceptional founder (individual or team) that’s just starting up, Nitin Sharma & I will spend a full day in Bombay on the 27th of August to talk to you! The only twist - you need to reach us through someone who knows you - and knows us too! Why are we doing this - we announced last month that we are investing $500k in 20 companies (amounting to $10Mn). This is our endeavor to deliver faster and bigger on this promise! What we promise - is a decision into the Residency within 24 hours of us meeting you. Here’s how it will work - (1) Find someone in our networks (cue: some of them would have shared this post on their LinkedIn / Twitter) or would have engaged with us in the past. (2) Show us you are super resourceful :) Ask them to email us / tweet to us / message us on LI / Whatsapp us - any of the Antler team members that they know (there’s 18 of us!) - to give a warm intro to you. Convince them to write a good line or two :)  (3) All shortlisted individuals and teams will get a direct slot with Antler India on Aug 27th meet us IRL in Mumbai. (If you are not shortlisted post the above process, you will hear from us by Aug 24th) (4) You will get a decision to get into the Antler India Residency by Aug 28th Please note that the last date for being referred to this is 21st of August. Do refer great folks our way! Next on the list - NCR in September!

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Raising 1 crore for my D2C business from a High Net-Worth Individual in Gurgaon turned out to be easier than I expected. It taught me an important lesson: raising funds isn’t about luck; it’s about timing and strategy. Startups are risky, and sometimes the best thing you can have is patience. Instead of rushing for fast growth, it's crucial to build a solid business foundation. I’ve learned that you shouldn’t raise funds only when you desperately need money. Instead, raise funds when your business is strong and investors are eager to invest in you. This reminds me of the story of Big Bazaar and Dmart in India. Big Bazaar expanded rapidly across the country, trying to grow fast. But this led to problems like high debt and inefficiency, which eventually caused its downfall. On the other hand, Dmart, founded by Radhakishan Damani, took a different approach. Dmart grew slowly and carefully, opening new stores only when it made sense. This strategy focused on efficient operations and understanding customer needs, leading to steady and sustainable growth. Dmart’s careful planning and patience allowed it to thrive, even when times were tough. Dmart’s success shows that real growth doesn’t happen overnight. It’s about expanding at the right time and in the right way. This story inspires me to focus on patient, thoughtful growth for my own business, ensuring it stands strong for the future. In short, my journey and the story of Dmart teach a valuable lesson: be patient, grow wisely, and let your business evolve naturally.

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OYO Hits Pause on IPO Again, Eyes Private Funding Amidst 75% Valuation Drop OYO Hotels & Homes has withdrawn its IPO application for the second time, opting instead for private funding. This decision comes as the company's valuation has plummeted by nearly 75% from its peak, now seeking funds at a valuation between $2.3 billion and $3 billion. Despite significant backing from SoftBank, OYO's ongoing financial challenges and a chilly market for tech IPOs have prompted this strategic pivot. CEO Ritesh Agarwal is personally involved in securing up to $90 million in new investments, aiming to stabilize the company's finances and operations. #OYO #StartupNews #IPOWithdrawal #PrivateFunding #Valuation

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Indian venture market has exploded. Someone reported that there are 800+ funds/networks/syndicates/ accelerators active in Indian venture market now. Not sure, if that number is correct but if you are an early stage tech founder on your fundraise journey, chances are, you would meet hundreds of people. While majority of the fund houses are doing incredible work and shaping the ecosystem. There are certain kinds of investors you need to identify & avoid to save time and stay focused: Sharing from my personal experience, top 5 such cohorts to avoid and the takeaways for the founders: 1. Data collectors: At early stage, you don't have historical data to present. Your projections are just that, Projections. I wasted one whole week discussing with a prospective angel investor on why the CLTV to CAC ratio is x, and not y. Takeaway: Discuss high level strategic numbers only without going into the details. None of the projections would be accurate anyway when rubber hits the road. 2. Document collectors: Met few folks, who would watch from the fences and ask for n number of documents, data rooms, statements without sharing the purpose of the ask or even revealing their investment intent. Takeaway: It is supposed to be a bi-directional conversation. Say 'no' often, till the time, an official relationship is established. 3. Valuer (! investor): At early stage, valuation is a function of multiple parameters, the opportunity itself, the team, or anything else except steady cash flows, because you don't have much. I wasted another week with a prospective investor trying to justify valuation, had to shut down that conversation, after both of us started quoting Aswath Damodaran and his valuation principles. Takeaway: Too much content on the internet for both parties anyway. Shouldn't be a bone of contention at early stages. 4. Facilitators posing as investors: Met numerous people, who would go to any lengths to pose themselves as serious investors, even buying paid media articles. Only to reveal at the last: The success fee. Takeaway: Avoid facilitators until Series A 5. Brokers posing as market makers: People posing as market makers sharing tons of gyaan on LinkedIn but are actually deal brokers looking to make quick %. Personal experience: Two rounds of conversation happened and then out of blue, they added a third party in the mail trail, someone who facilitates mergers & acquisitions. There wasn't even a single instance in the past conversations where we indicated any such intent. Takeaway: Avoid name & shame in public but at least share within founder communities. #venture #fundraise #startups #investing

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What did buying 100g of coriander (Dhaniya) for Rs 64 on Swiggy teach me about entrepreneurship? -- Dhainya kafi mehenga ho gaya hai Rs 640/kg, business might be profitable 😉 If you need similar insights about tamatar, adrak and gobhi comment below and send me a connection request I will share the link for free. Post credit: Learnings from LinkedIn influencers, also adding a completely random and unrelated pic and hastag for some reason. #mondaymotivation #justforfun

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Online shopping of jewelry is growing at a CAGR of 28% & offers $77B market opportunity. Enter Eternz Fashion Private Limited - A one stop shop for all your jewelry needs, TDV Partners latest investment and portfolio company. It is an Omnichannel curated marketplace for Jewelry focusing on millennials & GenZs with focus on personalization & customization from a variety of brands from not just India but globally. Jewelry market’s online shopping penetration globally is around 8% with developed markets like US having 12% contribution to the total sales. India hardly has 2% online penetration currently. The no. of jewelry brands out there is increasing by leaps and bounds. You might have seen a bunch of jewelry startups in the season 3 of Shark Tank India already. With this trend increasing further, the need of a platform, one stop shop kinds for all the jewelry needs is evident and Eternz Fashion Private Limited is the answer to that. Excited to back Arthi Ramalingam in building Eternz along side Kae Capital, IIMA Ventures, Gemba Capital & Venture Labs #Eternz #jewelry #marketplaces #portfolio #investment https://lnkd.in/g-ggyiFS

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