Cloaked raises $375M to bring consumer privacy tools to enterprise

Cloaked, a privacy and security company, announced on Thursday that it has secured $375 million in Series B funding—a stage of venture capital financing—and growth financing. The round was led by General Catalyst and Liberty City Ventures, with participation from Lux Capital, Human Capital, Marquee Ventures, Fifth Growth Fund, NFL Players Association, LG Technology Ventures, Assurant Ventures, and DuckDuckGo. Prior to this, Cloaked had raised over $29 million in funding from investors including Lux Capital, Human Capital, and General Catalyst. The company did not disclose the divide between equity and growth funding.

Founded in 2020 by brothers Arjun Bhatnagar and Abhijay Bhatnagar, Cloaked initially offered users the ability to create multiple identities with data such as emails, phone numbers, and passwords to log in to different services without providing their actual data. Over the years, Cloaked rolled out other services like data removal, identity theft insurance, VPN, and dark web monitoring. The company is now expanding its consumer offering into the enterprise market. This expansion will allow Chief Information Security Officers (CISOs) to manage organizational risk.

The company, which currently has nearly 70 employees, reports significant traction:

• 10x growth last year.
• More than 350,000 paying customers.
• 10 million identities protected.
• More than 1 billion records cleaned from data broker sites.
• Over 50 million scam or spam phone calls processed since the launch of its call-screening feature.

Cloaked is positioning its enterprise expansion as a defense in an environment where hackers or scammers can use AI to get data or money in novel ways. The company intends to expand its AI-powered screening protection to text messages, email, and browsing this year, and is testing an AI agent that could take actions on behalf of users. “We’ve seen AI get better than humans at compromising individuals. And we look at this as a problem of personal safety, family safety, and financial fraud. We also see [AI proliferating] around scam spam and phishing. And it comes down to now in this age around surveillance, how do you find a solution that fits between these different aspects, and we’re winning in this category from the consumer side,” said Arjun Bhatnagar, CEO and co-founder of Cloaked. Mark Crane, a partner at General Catalyst, highlighted the product’s utility in addressing threats like scam spam and phishing and identity theft. Cloaked competes against other privacy and security providers, including 1Password, Gaurdio, Firefox, Proton, Mozilla, and its own investor, DuckDuckGo.

Why it matters

Cloaked is moving its consumer-focused privacy and security bundle into the enterprise market, aiming to protect users and companies against AI-driven threats like scams and phishing.