Mumbai: Goodbox, an app for buying both products and services, raised $2.5 million in a Series A (first) round from venture capital firm Nexus Venture Partners, the company said in a statement on Wednesday. The company had raised seed funding (early stage) of $200,00 in May from Manipal Group, Aprameya Radhakrishna (co-founder of TaxiForSure) and Charan Padmaraju (co-founder of redBus).

Promoted by Tsepak Technologies Pvt. Ltd, Goodbox, which offers goods and services from more than 1,200 merchants in Bengaluru, is looking to use the funds for merchant acquisition and building its team. Merchants include supermarkets, restaurants, laundry chains, rental providers, movers and packers, canteens and salons. The company was founded in 2014 by Abey Zachariah, Anand Kelaginamani, Charan Raj, Mahesh Herle, Mayank Bidawatka, Mohit Maheshwari and Nithin Chandra.

“Goodbox is empowering businesses by getting them online and helping them engage with their customers. We are excited about partnering with a team that has great product thinking and proven operational strengths," said Sandeep Singhal, co-founder with Nexus Venture Partners.

“Goodbox allows businesses to create a store on the Goodbox app that resembles the physical environment where the merchant can chat with their customers, upload their product/services catalog for search and discovery, take orders, accept payments and get logistics support. Customers can buy from and pay their trusted businesses through one window and reduce app fatigue of having to download multiple apps for multiple things," the company said in a statement.

Small and medium businesses in India which do not have a digital presence are seeing a fall in revenues by 8% on an average as compared to offline businesses that are creating an online presence and seeing a jump of 19% in revenue, according to a report by Google Inc. and Deloitte Touche Tohmatsu India Pvt. Ltd. Another firm, NowFloats Technologies Pvt. Ltd, which raised a Series A round of funding led by Omidyar Network earlier this year, helps small businesses create websites.

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