Cloaked, a privacy and security startup based in Massachusetts, is leveraging AI and unified security tools to protect personal data as online threats grow more sophisticated.
The company has announced $375 million in Series B and growth financing, a milestone that will accelerate its consumer offerings and fund a push into the enterprise market.
The round was led by General Catalyst and Liberty City Ventures, with participation from Lux Capital, Human Capital, Marquee Ventures, Fifth Growth Fund, the NFL Players Association, LG Technology Ventures, Assurant Ventures, and DuckDuckGo.
General Catalyst also provided growth capital through its Customer Value Fund, a structure designed to support customer acquisition without diluting equity. Cloaked has previously raised over $29 million. The company did not disclose its current valuation or the exact split between equity and growth funding.
What you need to know
Cloaked was founded in 2020 by brothers Arjun and Abhijay Bhatnagar. The idea emerged from Arjun’s personal experiment with an AI “databox” that aggregated information from his smartwatch, healthcare records, finances, emails, and messages to detect patterns in his daily life.
The experiment, however, revealed a troubling reality: his system had interactions with other people without his knowledge, highlighting how easily private information can slip beyond the user’s control.
That experience became the catalyst for Cloaked’s mission to give individuals greater authority over their digital lives.
“The fight for consumer privacy is at an inflection point with Cloaked building the platform that makes privacy easy to understand, simple to defend, and a mandatory aspect of daily life,” said Arjun Bhatnagar, co-founder and CEO at Cloaked.
From identity masking to a comprehensive privacy platform
Cloaked began by offering users unique phone numbers, email addresses, and passwords to control what they share and with whom. Over time, the company realised that limiting future data sharing was only part of the challenge, it also needed to help users reclaim control over personal information already circulating online.
The platform now provides a suite of privacy and security tools, including:
- Data removal from broker sites and other online sources
- Identity theft insurance
- VPN protection
- Dark web monitoring
Last year, Cloaked introduced AI-powered call screening to combat sophisticated scam and spam threats, processing more than 50 million suspicious calls since launch.
The company plans to extend this technology to texts, emails, and web browsing, while testing an AI agent capable of responding automatically after a detected breach, such as changing compromised passwords.
“Cloaked is going to continue building what others can’t, innovation that’s pro-consumer, pro-privacy, and long overdue,” said Abhijay Bhatnagar, co-founder and Chief Technology Officer. “Too much of the industry treats privacy as an afterthought while racing to ship AI with no guardrails. We’ve assembled some of the sharpest, most relentless minds who are proving that it doesn’t have to be a tradeoff.”
A full life-cycle approach to data protection
By combining identity masking, spam and scam blocking, secure passwords, and transaction protection, Cloaked seeks to make privacy management straightforward and integrated into everyday digital activity.
Its underlying philosophy is simple: privacy should be built in from the start, not treated as an afterthought.
The company reports 10x growth last year and more than 350,000 paying users. Cloaked says it has protected 10 million identities and removed over 1 billion records from data broker sites.
With nearly 70 employees, the company plans to expand teams in product, engineering, enterprise sales, and international operations. Rising online fraud, phishing, and impersonation scams are intensifying demand for comprehensive solutions.
A strategic move into enterprise security
Cloaked is extending its protections to businesses. Its enterprise tools provide employees with the same privacy safeguards as individual users, including identity and password management, scam alerts, and risk monitoring.
Chief Information Security Officers (CISOs) can track data exposure, blocked scams, and other aggregated security metrics, giving companies a clear view of organisational vulnerabilities and potential threats.
With $375 million in funding, a growing user base, and an ambitious expansion into enterprise solutions, Cloaked is betting on a unified approach to digital protection.
By combining AI, privacy-first infrastructure, and user-friendly tools, the startup is positioning itself at the forefront of a market that increasingly values control, transparency, and safety in online interactions.
Talking Points
It is notable that Cloaked has built a unified privacy and security platform, addressing a key challenge consumers face today, managing multiple apps for passwords, VPNs, identity alerts, and more.
This all-in-one approach positions Cloaked as a practical solution for everyday digital protection, making privacy simple, understandable, and manageable for users.
At Techparley, we see the potential of such platforms to accelerate digital safety and awareness, giving consumers greater control over their personal information while reducing exposure to fraud, phishing, and online scams.
The integration of identity masking, AI-powered call and message screening, data removal, and VPN protection means users can protect both future and existing personal data, offering a comprehensive approach that goes beyond traditional security tools.
As Cloaked scales into enterprise markets, there is an opportunity for businesses to provide employees with built-in digital security, combining consumer-grade protections with organisational oversight.
With the right partnerships and strategic support, Cloaked has the potential to become a leading privacy-first platform that sets a new standard for both consumers and enterprises.
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