Cloaked announced a $375 million Series B funding round on Thursday to expand its privacy services. The startup plans to use the capital to grow its consumer base and launch new enterprise solutions. This move signals a significant shift in how companies approach digital identity protection in a crowded and complex market.
General Catalyst led the investment round alongside Liberty City Ventures. Growth financing came through General Catalysts Customer Value Fund to support customer acquisition without diluting equity. Participation also included Lux Capital and DuckDuckGo among other backers.
The company established itself in 2020 with founders Arjun and Abhijay Bhatnagar. Early offerings allowed users to create multiple identities for logging into services without revealing real data. Over time the platform integrated VPN and dark web monitoring tools.
Arjun Bhatnagar stated that artificial intelligence has surpassed humans in compromising individuals. The firm aims to deploy AI agents that can change passwords after a breach occurs. Security decisions remain local to avoid passing sensitive information to the cloud.
Growth metrics show a 10x increase in users over the last year alone. More than 350,000 customers now pay for services protecting 10 million identities. The app processed over 50 million scam calls since launching call screening features last year.
Enterprise products will provide employees identity management similar to consumer tiers. Chief information security officers can view aggregated data on records cleaned or scams stopped. Alerts help organizations identify potential risks before they impact business operations significantly.
Cloaked competes directly with established players like 1Password and Proton. DuckDuckGo serves as both an investor and a competitor with overlapping privacy tools. The market remains fragmented with many users needing multiple tools for full protection.
The startup currently employs nearly 70 staff members across engineering and product teams. Plans include expanding international sales and hiring for enterprise divisions. The company aims to scale operations to meet growing demand for privacy infrastructure globally.
Mark Crane from General Catalyst described the product as a housekeeping seal of approval. He noted the flexibility allows users to choose specific pieces or the full bundle. This approach suits a wide range of consumer privacy needs effectively in the modern digital age.
