Privacy and security startup Cloaked has secured $375 million in a massive Series B and growth financing round. The company, which specializes in bundling fragmented security tools into a single platform, plans to use the capital to aggressively expand its consumer offerings and launch a new suite of enterprise-grade privacy solutions.
Consolidating Digital Security
Founded in 2020 by brothers Arjun and Abhijay Bhatnagar, Cloaked initially gained traction by allowing users to generate alias identities—including emails, phone numbers, and passwords—to interact with services without exposing personal data. Over time, the platform evolved into a comprehensive security hub, integrating data removal tools, identity theft insurance, VPN services, dark web monitoring, and AI-powered call screening.
CEO Arjun Bhatnagar emphasizes that the rise of AI-driven threats has turned digital privacy into a critical matter of personal and financial safety. “We’ve seen AI get better than humans at compromising individuals,” he noted. The company aims to position itself as the primary defense against the surge in sophisticated phishing and automated scam campaigns.
AI-Driven Expansion and Growth
Cloaked’s roadmap for the coming year includes extending its AI screening capabilities to cover text messages, email, and web browsing. The startup is also testing an autonomous AI agent designed to perform proactive security tasks, such as automatically updating passwords for services impacted by data breaches, all while ensuring sensitive information remains private and off-cloud.
The company reports significant momentum, claiming a 10x growth rate over the last year and a user base exceeding 350,000 paying customers. To date, the platform has protected over 10 million identities and facilitated the removal of more than 1 billion records from data broker sites. Furthermore, its call-screening feature has intercepted over 50 million spam or scam attempts.
Entering the Enterprise Market
A major focus of this funding is the launch of Cloaked for Enterprise. This B2B offering provides employees with the same security stack used by consumers, while giving CISOs centralized visibility into risk levels, aggregated data on blocked threats, and insights into potential vulnerabilities that could impact the business.
Investment Details
The funding round was co-led by General Catalyst and Liberty City Ventures. Participation included a diverse group of investors: Lux Capital, Human Capital, Marquee Ventures, Fifth Growth Fund, the NFL Players Association, LG Technology Ventures, Assurant Ventures, and DuckDuckGo. General Catalyst also provided additional growth financing through its Customer Value Fund to accelerate user acquisition without further equity dilution.
Mark Crane, a partner at General Catalyst, believes Cloaked is uniquely positioned to become a standard for digital hygiene. “The beauty of Cloaked is that any consumer can approach it and get the solution they want and need,” Crane stated, highlighting the platform’s modular approach to privacy as a key differentiator against competitors like 1Password, Proton, and Mozilla.