Consumer-focused privacy company Cloaked raises $375M as it expands to enterprise

Cloaked, a privacy-centric company known for its comprehensive suite of security solutions, has recently announced a significant fundraising milestone, securing $375 million in Series B financing. This funding is aimed at expanding its offerings for consumers while also venturing into the enterprise sector. Founded in 2020 by brothers Arjun and Abhijay Bhatnagar, Cloaked has developed tools that allow users to create multiple identities using various data points like email addresses and phone numbers. This innovative approach enables individuals to access services without exposing their real information. Over time, Cloaked has broadened its range of services to include features such as data removal, identity theft insurance, VPN services, and dark web monitoring. Notably, the company introduced AI-powered call screening last year, responding to the increasing threats posed by hackers and scammers leveraging artificial intelligence to exploit personal data. Cloaked’s CEO, Arjun Bhatnagar, emphasized the pressing need for solutions that enhance personal and family safety amid escalating AI-driven fraud. The startup is poised to extend its AI capabilities to protect text messages, emails, and web browsing within this calendar year. Additionally, it is experimenting with an AI agent that could autonomously change passwords for compromised accounts, ensuring that sensitive information remains secure and is not transmitted to the cloud. The company has experienced remarkable growth, with a tenfold increase in its user base last year, now boasting over 350,000 paying customers and having safeguarded 10 million identities. Cloaked's app has successfully filtered out more than 50 million scam or spam calls since the launch of its call screening feature. In its latest move, Cloaked is rolling out services designed for enterprises, offering employees similar protections as those available to consumers. This includes alerting workers about potential scams and allowing company Chief Information Security Officers (CISOs) to assess individual risk levels and examine aggregated data regarding cleaned records and thwarted scams. With a team of nearly 70 employees, Cloaked aims to bolster its workforce across various departments, including product development, engineering, enterprise sales, and international outreach. The company faces competition from established players like 1Password, Gaurdio, and Mozilla, among others. The latest funding round was led by General Catalyst and Liberty City Ventures, with support from various other investors. Mark Crane from General Catalyst noted that Cloaked’s diverse array of security and privacy tools caters to a broad consumer base. He expressed confidence in the startup’s potential to safeguard individuals and organizations in an increasingly AI-driven digital landscape, describing it as a valuable resource for users seeking reliable privacy solutions.