Meesho said on Monday it has raised $300 million in a new financing round led by SoftBank Vision Fund 2 as the Indian social commerce startup works to become the “single ecosystem that will enable all small businesses to succeed online.”

The new round — a Series E — gives the five-year-old startup a valuation of $2.1 billion, up from about $600 million – $700 million in 2019 Series D investment. The Indian startup, which has raised about $490 million to date, said existing investors Facebook, Prosus Ventures, Shunwei Capital, Venture Highway, and Knollwood Investment also participated in the new round.

This appears to be Shunwei Capital’s first investment in an Indian startup in nearly a year. New Delhi last year introduced a rule to require its approval for a Chinese investor to write a check to an Indian firm.

Bangalore-based Meesho operates an eponymous online marketplace that connects sellers with customers on social media platforms such as WhatsApp, Facebook and Instagram. Its features include order management, taking care of logistics, online payments, real-time shop updates, and allowing businesses to get their customers to subscribe.

The startup claims to have a network of more than 13 million entrepreneurs, a majority of whom are women, from hundreds of Indians towns who largely deal with apparel, home appliances and electronics items.

Meesho said it will deploy the fresh capital to help 100 million individuals and small businesses in the country to sell online. “In the last one year, we have seen tremendous growth across small businesses and entrepreneurs seeking to move their businesses online,” said Vidit Aatrey, co-founder and chief executive of Meesho, in a statement.

“We have been closely tracking Meesho for the last 18 months and have been impressed by their growth, daily engagement metrics, focus on unit economics and ability to create a strong team. We believe Meesho provides an efficient platform for SME suppliers and social resellers to onboard the e-commerce revolution in India and help them provide personalized experience to consumers,” said Sumer Juneja, partner at SoftBank Investment Advisers, in a statement.

In a recent report, UBS analysts identified social commerce and business-to-business marketplaces as potential sources of competition to e-commerce firms such as Amazon and Flipkart in India.

This is a developing story. More to follow…