Security tools often focus on a single modality, like password protection or VPNs, requiring multiple tools to maintain privacy. Cloaked, offering a comprehensive security and privacy bundle, announced $375 million in Series B funding to enhance its consumer offerings and enter the enterprise market.
Founded by brothers Arjun and Abhijay Bhatnagar in 2020, Cloaked initially allowed users to create multiple identities using email, phone numbers, and passwords to log into various services without exposing actual data. It has since expanded to include data removal, identity theft insurance, VPN, and dark web monitoring, and introduced AI-powered call screening last year.
Cloaked aims to protect consumers from AI-driven scammers exploiting data in novel ways.
“We’ve seen AI surpass humans in compromising individuals, impacting personal safety, family safety, and financial fraud. AI is prevalent in scams and phishing, leading us to address these issues in the context of surveillance,” said CEO Arjun Bhatnagar.
The startup plans to expand its AI-driven screening to text, email, and browsing this year, and is testing an AI agent for tasks like changing compromised passwords. The goal is using AI safely without sending sensitive data to the cloud.
Cloaked reports 10x growth, now with over 350,000 customers and 10 million identities protected, cleaning over 1 billion records from data broker sites. The app has processed over 50 million scam calls.
Cloaked is extending its enterprise offerings, providing identity and password management to employees, alerts about potential scams, and allowing CISOs to assess risk and review aggregated data regarding cleaned records or stopped scams.
The startup, with nearly 70 employees, plans to expand in product, engineering, enterprise sales, and internationally.
Cloaked competes with 1Password, Guardio, Firefox, Proton, and Mozilla, and shares some products with investor DuckDuckGo, which also offers VPN and identity theft protection.
Led by General Catalyst and Liberty City Ventures, with participation from Lux Capital and others, the latest round included growth financing from General Catalyst’s Customer Value Fund, which supports startups without equity dilution. The valuation and equity vs. growth funding split were undisclosed.
Cloaked previously raised over $29 million from investors like Lux Capital and General Catalyst.
Mark Crane of General Catalyst, an investor in all rounds, highlighted Cloaked’s comprehensive offerings for diverse consumers.
Crane views Cloaked as well-positioned in the AI-driven internet era, providing a “housekeeping seal of approval” for users amidst the proliferation of AI agents.
“In terms of the product, they cover extensive areas consumers want for privacy,” he told TechCrunch. “People can use everything or select specific aspects. Cloaked lets any consumer approach and get the solution they want and need.”