Uber will work with Lime as a strategic partner in the electric scooter space with the companies working to co-brand Limes scooters and make the service available on the Uber app.
The investment round was led by GV, formerly Google Ventures, and also included private equity firm IVP, London-headquartered investment firm Atomico and asset manager Fidelity Management and Research.
The latest investment round valued Lime at $1.1bn Bloomberg reported.
Lime's main rival in the scooter space is Bird, which is now valued at $2bn following a $300m funding round last month led by venture capital firm Sequoia Capital.
Uber agreed to buy electric bicycle service Jump Bikes earlier this year and was among the companies applying for a scooter permit in San Francisco in June.
Lime, which operates bike and scooter schemes in about 60 cities and university campuses in the US, has launched operations in the German cities of Berlin and Frankfurt and in Zurich in Switzerland and Paris in France.