Cloaked raises $375M to take consumer privacy tools into enterprise
What's the deal? Cloaked, a consumer privacy startup founded in 2020 by brothers ArjunDealroom has a profile for this one. Try Dealroom → and Abhijay BhatnagarDealroom has a profile for this one. Try Dealroom →, has raised $375M in Series B and growth financing; the split between equity and debt has not been disclosed.
The round was led by General Catalyst and Liberty City Ventures, with DuckDuckGo and Lux Capital among the participants. The company — which bundles identity masking, VPN, dark web monitoring, and AI-powered call screening — is now moving into enterprise.
Cloaked lets users create virtual identities (proxy emails, phone numbers, passwords) to interact with online services without exposing real personal data. It has more than 350,000 paying subscribers and claims to have processed over 50 million scam calls since launching call screening last year.
Why now? AI is making fraud cheaper and more effective. Chief executive officer Arjun Bhatnagar argues the threat has shifted: "We've seen AI get better than humans at compromising individuals." The company saw 10x growth last year, and is scaling fast enough to pursue enterprise clients — offering employee identity protection and risk dashboards for chief information security officers.
What could go wrong? The consumer-to-enterprise pivot is well-worn and unforgiving. Enterprise sales cycles are long and expensive, often requiring months of security audits and procurement. Cloaked competes against entrenched players like 1Password and Okta, and one of its own investors — DuckDuckGo — sells overlapping products, including VPN and identity theft protection.
The signal: Privacy is graduating from personal virtue to corporate necessity. With AI-powered scams proliferating and regulatory penalties rising, businesses are treating data protection as essential.
Cloaked's raise signals investor conviction that consumer-grade privacy tools, made usable enough for everyday people, can anchor a serious enterprise business. The bet: simplicity is the missing ingredient in a market full of clunky security software.
Sources:
TechCrunch
The Tech Buzz
Mezha
Grey Journal
Arjun Bhatnagar's LinkedIn post
Image credit:
Cloaked
J.V.
