Sonos, which sells a digital music system that can be used to play music throughout a home, has raised $25 million in a third round of funding from Index Ventures. The funding was first reported by TechCrunch earlier this week and confirmed by Sonos CEO John MacFarlane in an interview with AllThingsD. Index Ventures Partner (and former Cisco exec) Mike Volpi is joining Sonos’ board.

Sonos’ system lets users wirelessly play music from their own collections or from online throughout their homes with minimal equipment; the entire system can be controlled via Sonos’ iPhone app. Seems very cool, although from the looks of the screenshots on the site it’s not being marketed to the average consumer. The cheapest bundle—which is good for streaming music in two rooms—costs $999.00. (A spokeswoman notes however that a single system—appropriate for one room—costs $399.00).

The new cash brings Sonos’ total funding to $61 million. The company raised a $6 million second round in June 2007.

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