Cloaked, a company founded by brothers Arjun and Abhijay Bhatnagar in 2020, has announced a significant funding round of $375 million. This investment will help the company enhance its privacy solutions for consumers and expand into the enterprise market.
The startup initially focused on providing users with tools to create multiple identities, allowing them to log in to various services without revealing their actual data. Over time, Cloaked has broadened its offerings to include services such as data removal, identity theft insurance, VPNs, and dark web monitoring. Recently, it also introduced AI-powered call screening.
Addressing Modern Privacy Challenges
In a landscape where hackers increasingly leverage AI for malicious purposes, Cloaked aims to protect consumers from evolving threats. CEO Arjun Bhatnagar emphasized the importance of personal and family safety in the face of growing surveillance and fraud risks.
Plans for AI Integration
Cloaked plans to extend its AI-powered screening capabilities to cover text messages, emails, and web browsing. The company is also testing an AI agent that can take proactive measures, such as changing passwords for compromised accounts, while ensuring sensitive information remains secure.
Growth and Customer Base
Last year, Cloaked experienced a tenfold growth, now boasting over 350,000 paying customers. The company has successfully protected 10 million identities and assisted users in cleaning up more than 1 billion records from data broker sites. Its call-screening feature has processed over 50 million scam calls since its launch.
Enterprise Solutions
As part of its expansion strategy, Cloaked is now offering enterprise solutions that provide employees with similar protections to its consumer products. This includes identity and password management tools, as well as alerts for potential scams. Chief Information Security Officers (CISOs) can access aggregated data on risks and threats affecting their organizations.
Team Expansion and Competitive Landscape
With nearly 70 employees, Cloaked plans to grow its team in product development, engineering, enterprise sales, and international markets. The company faces competition from established players like 1Password, Guardio, Firefox, and DuckDuckGo, which also offers overlapping privacy solutions.
Funding Details
The recent funding round was led by General Catalyst and Liberty City Ventures, with participation from several other investors. General Catalyst also provided growth financing through its Customer Value Fund, which supports startups without diluting equity.
Prior to this round, Cloaked had raised over $29 million from various investors. Mark Crane from General Catalyst noted that Cloaked’s comprehensive approach to security and privacy positions it well in a rapidly changing digital landscape.
