Privacy-focused company Cloaked has raised $375 million in a combined Series B funding round and growth financing, signaling rapid expansion into both consumer and enterprise markets. The funding reflects a growing concern about digital security in an era where artificial intelligence amplifies fraud and data breaches.
The Rise of All-in-One Privacy Solutions
For years, consumers have navigated a fragmented landscape of privacy tools — separate VPNs, password managers, and identity theft services. Cloaked, founded in 2020 by Arjun and Abhijay Bhatnagar, offers a unified solution bundling these features under one subscription. This includes data removal from broker sites, identity theft insurance, AI-powered call screening, and now, expanded AI protection for text messages, emails, and browsing. The company reported 10x growth last year, currently serving over 350,000 paying customers and protecting 10 million identities.
AI as a Double-Edged Sword: The Driving Force Behind Growth
The shift toward comprehensive protection is fueled by the rising sophistication of cybercrime. Cloaked’s CEO, Arjun Bhatnagar, points to AI’s ability to surpass human scammers in effectiveness. “We’ve seen AI get better than humans at compromising individuals,” he said. The company is developing an AI agent capable of proactively securing compromised accounts by changing passwords, all while keeping sensitive data offline.
This isn’t just a consumer play. Cloaked is now targeting businesses, offering employee protection against scams and data breaches. Enterprise clients gain access to aggregated risk assessments and alerts, enabling CISOs to monitor and mitigate threats across the organization.
Competition and Future Outlook
Cloaked faces competition from established players like 1Password, Proton, and DuckDuckGo. However, its bundled approach and aggressive AI integration position it uniquely in a market where consumers and businesses increasingly demand comprehensive, proactive security. The funding round was led by General Catalyst and Liberty City Ventures, with participation from investors including Lux Capital and the NFL Players Association. General Catalyst partner Mark Crane emphasizes Cloaked’s adaptability: “Some people want to use everything out of the box, and some people want to use smaller pieces. And 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.”
The company aims to expand its team in product development, engineering, enterprise sales, and international markets. Cloaked’s success underscores the growing demand for all-inclusive digital security in a world where AI both powers threats and offers solutions.
