Silicon Valley firm Technology Crossover Ventures, which also invested in Netflix, Facebook and Groupon, led the investment.
Spotify is now in 32 markets, up from 17 a year ago. It competes with U.S. companies Pandora and Apple's iTunes for music streaming. It also raised more revenue than Pandora last year, with close to $585 million raised compared with Pandora's $427 million.
Spotify raised $100 million in a previous year of fundraising from Goldman Sachs and Coca-Cola, among others.
Pandora went public last year and is now valued at $5.7 billion. But both Pandora and Spotify face a shortfall in profits. A huge cost for Pandora has been music royalty costs, while the bulk of Spotify's expenditures are on expanding to new markets.