Most consumer security apps solve just one problem at a time: a password manager here, a VPN there, maybe a separate identity protection service on top. The result is a patchwork of subscriptions and settings that still leaves people exposed. Cloaked is betting that everyday users want something simpler and more complete, and investors are backing that idea in a big way.
Cloaked, a privacy and security company founded in 2020 by brothers Arjun and Abhijay Bhatnagar, announced it has raised $375 million in Series B funding and growth financing. The fresh capital will help Cloaked expand its consumer privacy suite and accelerate its move into the enterprise market, where companies are looking for stronger protection against scams, phishing, and AI-assisted fraud.
From the start, Cloaked focused on one of the biggest privacy pain points online: having to hand over real personal information just to sign up for services. The app originally allowed people to create multiple identities using alternative emails, phone numbers, and passwords—so users could log in and communicate without exposing their true data. Over time, Cloaked broadened into a bundle of tools that covers more of the threats people deal with daily, including data removal from broker sites, identity theft insurance, VPN services, and dark web monitoring. In 2024, it added AI-powered call screening designed to catch scam and spam calls before they waste time—or worse, trick someone into giving up money or information.
Now Cloaked is leaning even harder into the moment. As AI improves, scammers and hackers can scale their attacks and make them more believable, from smarter phishing attempts to more convincing social engineering. CEO Arjun Bhatnagar says the company sees this as a personal and financial safety issue, especially as surveillance and data collection continue to expand and fraud tactics evolve.
To meet those new threats, Cloaked plans to extend its AI-powered screening beyond phone calls. This year the company intends to bring the same type of protection to text messages, email, and web browsing. It’s also testing an AI agent that can take action for users in certain situations—such as initiating a password change when an account’s data appears compromised. Cloaked says it aims to use AI carefully and avoid sending sensitive information to the cloud.
The company’s traction suggests there’s significant demand for an all-in-one privacy platform. Cloaked reports 10x growth over the past year and says it now has more than 350,000 paying customers. It also claims to have protected 10 million identities and helped remove more than 1 billion records from data broker websites. Since launching call screening, the app has reportedly processed more than 50 million scam or spam phone calls—an indicator of just how overwhelming the problem has become.
Alongside its consumer expansion, Cloaked is officially pushing into enterprise security. The idea is to give employees many of the same protections available in the consumer product, including identity and password management and alerts about potential scams. For security leaders, the enterprise offering adds visibility into organizational risk, such as assessing individual risk levels and viewing aggregated data related to blocked scams and cleaned records. Cloaked also aims to help businesses spot scams or exposed data that could directly impact the company.
Cloaked currently has close to 70 employees and plans to grow headcount across product development, engineering, enterprise sales, and international expansion.
In a crowded digital privacy and cybersecurity market, Cloaked competes with well-known names in areas like password management, privacy-focused browsing, VPNs, and identity protection. Unlike many single-purpose tools, Cloaked is positioning itself as a “bundle-first” platform—one place where consumers can choose a full suite or only the features they care about.
The funding 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. The deal also includes growth financing via General Catalyst’s Customer Value Fund, which supports customer acquisition without diluting equity in the same way as traditional fundraising. Cloaked did not disclose its valuation or the exact split between equity funding and the growth financing portion.
Before this raise, Cloaked had secured more than $29 million from investors, including Lux Capital, Human Capital, and General Catalyst. General Catalyst partner Mark Crane, who said the firm has backed Cloaked in every round and is leading for the first time here, pointed to the company’s broad product “surface area” as a key advantage—supporting users who want an all-in-one privacy toolkit as well as those who prefer to adopt specific features over time.
With AI-driven scams accelerating and personal data continuing to leak and circulate across the internet, Cloaked is making a straightforward pitch: people shouldn’t need five separate apps to feel safe online. This new funding gives the company the resources to push that vision further—both for families trying to protect their identities and for organizations trying to protect their workforce in an increasingly AI-powered threat landscape.
