As online threats grow more sophisticated, consumers are often left piecing together multiple tools to protect themselves. One app for passwords, another for a VPN, another for identity alerts. Cloaked wants to change that model.
The privacy and security startup based in Massachusetts has announced $375 million in Series B funding and growth financing as it looks to expand its consumer offering and push into the enterprise market. The new capital marks a major step for a company betting that digital protection works better when it is unified rather than fragmented.
The latest 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.
General Catalyst also provided growth financing through its Customer Value Fund, a structure designed to support customer acquisition without diluting equity. Cloaked did not disclose its valuation or how the funding was split between equity and growth capital. Before this, the company had raised more than $29 million.
How the idea was born
Cloaked was founded in 2020 by brothers Arjun and Abhijay Bhatnagar. The idea came from a deeply personal experience. That year, Arjun built his own AI system to better understand his life through data. It combined information from his smartwatch, healthcare records, finances, emails, and messages into what he described as a personal “databox.” The system could spot patterns in his behaviour, telling him when to exercise more, spend less, or cut back on drinking.
But the experiment also revealed something more troubling. Without his knowledge, the app had a conversation with his then-girlfriend. That became a turning point. It showed how much control technology could have over private information, and how easily that control could slip away from the user.
That experience shaped Cloaked’s early mission: to help people reclaim control over their identities and make it harder for their personal information to be tracked and tied together across services. The company began by offering unique phone numbers, email addresses, and passwords, giving users a simpler way to decide what they share and with whom.
As the company evolved, so did its focus. Cloaked realised that limiting future data sharing was only part of the challenge. It also needed to help people regain control over the personal information that was already circulating online.
From identity masking to a broader privacy platform
Building on that foundation, Cloaked expanded into a wider privacy and security platform. Its services now include data removal, identity theft insurance, VPN protection, and dark web monitoring.
Last year, the company introduced AI-powered call screening, a move aimed at tackling increasingly sophisticated scam and spam threats. Since launch, Cloaked says the feature has processed more than 50 million scam or spam phone calls.
The company is now extending that protection further. This year, it plans to bring its screening technology to text messages, email, and browsing. It is also testing an AI agent that could act on a user’s behalf after a breach or threat is detected, such as changing the password for a compromised account.
Arjun Bhatnagar said the company wants to use AI carefully, without sending sensitive user information to the cloud, as privacy concerns continue to grow alongside online threats.
How Cloaked does it
Cloaked’s approach goes beyond helping people create safer digital identities. The company is focused on protecting the full life cycle of personal data, past, present, and future.
It began by giving users tools such as unique phone numbers, email addresses, and passwords, making it harder for companies or bad actors to connect different parts of a person’s digital life. But Cloaked’s wider mission is not only to limit what gets shared going forward. It is also about cleaning up the information that is already out there.
To do that, the company has built services such as data removal, which helps users erase exposed personal details from data broker sites and other online sources. It has also introduced AI-powered spam and scam blocking to prevent unwanted or suspicious communications from reaching the user. Newer products, including Cloaked Pay, are designed to enhance online transaction security by adding a layer of privacy and protection.
The larger aim is to make privacy easy to manage in everyday life. Rather than forcing people to choose between convenience and security, Cloaked aims to have both work together. Its core argument is straightforward: privacy should not be an extra step people remember only after something goes wrong. It should be built in from the start.
Growth numbers show rising demand
Cloaked’s momentum suggests the market is responding. The company said it recorded 10x growth last year and now has more than 350,000 paying customers. It also said it has protected 10 million identities and helped remove more than 1 billion records from data broker sites. Those figures point to growing demand from consumers who want stronger control over how their information is stored, shared, and exposed online.
The startup now has nearly 70 employees and plans to grow its team across product, engineering, enterprise sales, and international expansion. The timing makes sense. Fraud, phishing, and impersonation scams are becoming harder to detect, especially as attackers adopt newer technologies and more convincing tactics.
A new push into enterprise security
Cloaked is no longer focused only on individual users. It is now rolling out enterprise products that give employees access to some of the same protections found in its consumer tools, including identity and password management.
The enterprise product also alerts workers to potential scams, while giving CISOs a broader view of individual risk levels and aggregated security data, such as records cleaned or scams blocked. Companies can also spot data exposure or scam activity that could create wider business risks.
