The Southampton-based print and design firm is aiming to increase turnover to £3m by taking on more work with the Lithrone S1029P.
The 17-year-old printer, which produces corporate brochures, magazines and flyers, counts B&Q, Southampton University and Warwick University Students' Union among its client base.
Indigo Press managing director Richard Docherty called the investment "a major milestone in the development of this company".
He added: "We are growing significantly, have demanding customers and are investing to exceed their expectations.
"They need faster turnaround times and more and more work producing – this investment means that we are very well placed to cope with those demands both now and as they grow in the future."
The Lithrone S1029P can handle a variety of stocks and can reach production speeds of up to 16,000sph.
The investment comes two years after the firm bought a five-colour Komori NL528 for £400,000.
Have your say in the Printweek Poll
Related stories
Latest comments
"Sad to see another print company facing financial trouble. The industry is tough, and this highlights the ongoing challenges many are facing. Hope employees and customers get clarity soon."
"Not surprised, businesses need to prepare for these attacks rather than thinking that they're going to avoid them. At the very least, data needs to be fully protected with air gaps in place..."
"So much for growth then!"
Up next...
Six months after Charlesworth deal
TJ Books looks to appoint admins
Current timeframes are insufficient
Election print and postal pressures highlighted in AEA report
"Significant milestone"
Riso celebrates 20 years of inkjet
Strengthens existing product portfolio