Cloaked Raises $375M to Bring Privacy Tools to Enterprise

Cloaked, a privacy and security startup that consolidates fragmented digital protection tools into a single platform, has secured $375 million in Series B and growth financing. The company plans to utilize this capital to scale its consumer-facing offerings and launch a new suite of solutions tailored for enterprise clients.

Founded in 2020 by brothers Arjun and Abhijay Bhatnagar, the startup initially gained traction by allowing users to generate multiple identities—including masked emails and phone numbers—to prevent third-party services from accessing their primary personal data. Since then, the platform has evolved to include dark web monitoring, data removal, identity theft insurance, and VPN access.

Scaling AI-Powered Defense

The company is positioning itself as a vital defense mechanism against the rising tide of AI-enhanced cyber threats. According to CEO Arjun Bhatnagar, the shift toward artificial intelligence has made it easier for malicious actors to conduct sophisticated phishing campaigns and financial fraud.

“We’ve seen AI get better than humans at compromising individuals,” Bhatnagar noted. “We look at this as a problem of personal safety, family safety, and financial fraud.”

The company’s growth metrics underscore its rising influence in the sector:

• More than 350,000 active paying customers.
• Over 10 million identities protected.
• 1 billion records scrubbed from data broker databases.
• 50 million spam or scam calls processed via its AI screening feature.

Looking ahead, Cloaked intends to integrate AI-powered screening into email, text messaging, and browsing. The team is also developing an AI agent designed to perform automated security tasks, such as resetting credentials for accounts impacted by data breaches, while ensuring that sensitive data remains local rather than being transmitted to the cloud.

Expansion into Enterprise Markets

With this latest funding, Cloaked is entering the enterprise sector, offering businesses a way to extend these privacy protections to their workforce. The enterprise product suite provides employees with identity and password management, while giving CISOs visibility into potential security risks.

Company leaders can now monitor aggregated metrics, including the number of scams blocked and records cleaned, helping them mitigate threats that could impact the business’s bottom line. The startup, which currently employs roughly 70 people, plans to grow its headcount across engineering, product development, and global sales departments.

Investor Backing

The funding round was co-led by General Catalyst and Liberty City Ventures. Participation also included Lux Capital, Human Capital, Marquee Ventures, Fifth Growth Fund, the NFL Players Association, LG Technology Ventures, Assurant Ventures, and DuckDuckGo.

Mark Crane, a partner at General Catalyst, emphasized the platform’s versatility as a key driver for the investment. “Some people want to use everything out of the box, and some people want to use smaller pieces,” Crane explained. “The beauty of Cloaked is that any consumer, anything they care about, they can approach it, and they can get the solution that they want and need.”