Cloaked Secures $375 Million to Reinvent Digital Privacy in the AI Era
Cloaked Secures $375 Million to Reinvent Digital Privacy in the AI Era
As cybercrime accelerates in the age of artificial intelligence, one privacy startup is gaining massive investor confidence by building the infrastructure for a safer internet.
Introduction
The digital economy runs on data. Every online interaction—from signing up for a streaming platform to ordering food online—requires users to share personal information such as email addresses, phone numbers, passwords, and payment details. While these interactions power the modern internet, they also create a massive vulnerability: personal data is constantly exposed to potential misuse.
Over the past decade, data breaches, identity theft, and online scams have surged dramatically. The situation has become even more complex with the rapid advancement of artificial intelligence, which cybercriminals are increasingly using to automate attacks and manipulate personal data.
In response to these growing risks, privacy-focused cybersecurity startups are attracting significant investor attention. Among them, Cloaked has emerged as one of the most promising innovators.
The company recently announced a $375 million funding round, marking a major milestone in its mission to protect digital identities and give individuals greater control over their personal information.
This investment not only highlights Cloaked’s rapid growth but also signals a broader shift in the technology industry toward privacy-first digital infrastructure.
A Landmark Funding Round
In early 2026, Cloaked secured $375 million in Series B funding, one of the largest funding rounds in the privacy and cybersecurity sector this year.
The round was led by prominent venture capital firms including General Catalyst and Liberty City Ventures, with participation from several well-known investors such as Lux Capital, Human Capital, and DuckDuckGo.
The funding significantly increases Cloaked’s total capital raised and provides the company with resources to expand product development, scale globally, and enter new markets.
Industry experts believe that this level of funding reflects a growing recognition that privacy technologies are becoming essential infrastructure for the internet.
As more personal data moves online and cyber threats become increasingly sophisticated, investors see long-term opportunities in companies that can secure digital identities.
The Story Behind Cloaked
Cloaked was founded in 2020 by brothers Arjun Bhatnagar and Abhijay Bhatnagar, who recognized a fundamental flaw in the way the internet handles personal data.
Most online platforms require users to provide their real identity when creating accounts. Once that information is stored on company servers, users have little control over how it is used or shared.
If a company suffers a data breach, millions of users can instantly have their personal information exposed.
The founders of Cloaked envisioned a different model—one where users could interact with online services without revealing their true personal identity.
Their solution was to create a platform that allows individuals to generate secure digital identities for each service they use.
These identities include unique email addresses, phone numbers, usernames, and passwords that are separate from a user’s real information.
This approach dramatically reduces the risk of identity theft, spam, and unwanted tracking.
How Cloaked’s Technology Works
Cloaked’s platform functions as a privacy layer between users and the internet.
When signing up for a website or application, instead of sharing real contact information, users can generate a “cloaked identity.”
For example, someone creating an account on an online marketplace could use a temporary email address and phone number generated by Cloaked.
If that marketplace later experiences a data breach, the leaked information would only expose the cloaked identity rather than the user’s real personal details.
The system essentially acts as a shield, protecting individuals from the consequences of compromised databases and aggressive data collection practices.
In addition to identity masking, the platform also includes several advanced security features designed to protect users throughout their digital experience.
Expanding the Privacy Ecosystem
Cloaked is not positioning itself as just another cybersecurity tool. Instead, the company aims to build a comprehensive privacy ecosystem.
Over the past year, it has introduced several new capabilities designed to strengthen digital protection.
Dark Web Monitoring
The platform continuously scans underground data markets and breach databases to detect when user information appears in leaked datasets. If suspicious activity is identified, users receive alerts and recommendations for securing their accounts.
AI-Powered Spam and Scam Protection
With the rise of AI-generated phishing scams and robocalls, Cloaked has introduced intelligent call-screening technology that automatically filters suspicious calls and messages.
Data Broker Removal
One of the biggest privacy risks today comes from data brokers—companies that collect and sell personal information.
Cloaked provides tools that automatically request the removal of user data from these databases, helping individuals regain control over their digital footprint.
Secure Password and Identity Management
The platform also includes password protection tools and encrypted identity management features to ensure that sensitive information remains secure.
Entering the Enterprise Market
While Cloaked initially focused on protecting individual consumers, the company is now expanding into enterprise security solutions.
Organizations today face growing risks from credential theft and identity-based cyberattacks. In many cases, hackers gain access to corporate systems simply by stealing login credentials rather than exploiting technical vulnerabilities.
Cloaked’s identity-protection technology can help businesses create secure digital identities for employees interacting with external platforms.
This approach reduces the risk of corporate data breaches while also improving privacy compliance.
The company plans to use its new funding to accelerate development of enterprise products and partnerships with organizations worldwide.
Why Privacy Startups Are Booming
Cloaked’s rapid rise reflects a broader transformation happening across the technology sector.
Privacy and cybersecurity startups are experiencing unprecedented demand as several global trends reshape the digital landscape.
First, cybercrime has become more sophisticated due to AI-driven automation. Attackers can now launch large-scale phishing campaigns and identity theft operations with minimal effort.
Second, data breaches have become increasingly common. Major companies across industries have suffered security failures that exposed millions of users’ personal information.
Third, governments are introducing stricter data protection regulations, forcing companies to improve how they handle personal data.
Finally, consumers themselves are becoming more aware of privacy risks and are actively seeking tools to protect their information online.
Together, these factors are driving strong growth in the privacy technology market.
The Road Ahead
With $375 million in new funding and a rapidly expanding user base, Cloaked is well positioned to become a major player in the global cybersecurity ecosystem.
The company plans to invest heavily in research and development, integrate artificial intelligence into its privacy tools, and expand into international markets.
It is also exploring partnerships with financial institutions, technology platforms, and telecommunications providers to embed privacy protection directly into digital services.
If these efforts succeed, Cloaked could play a critical role in shaping how digital identity works in the future.
Conclusion
The internet has transformed the way people communicate, work, and conduct business. However, this transformation has also created new risks for personal data and digital identities.
Companies like Cloaked are attempting to solve one of the most pressing challenges of the digital age: how to protect privacy in a world where data is constantly being collected, stored, and shared.
With significant investor backing, innovative technology, and growing demand for privacy solutions, Cloaked is emerging as a key player in the next generation of cybersecurity infrastructure.
As cyber threats evolve and AI continues to reshape the digital landscape, platforms that prioritize privacy will become increasingly essential.
Cloaked’s mission is simple yet powerful—to ensure that individuals remain in control of their digital identities.
And with hundreds of millions of dollars in new funding, the company now has the resources to turn that vision into reality.
