GoBear Ceases Operations After Failing To Raise Additional Funds

Singapore-based financial services and data platform GoBear announced today (January 5) that it will cease operations and begin an “orderly shutdown of the business.”

The firm cited the inability to raise additional funds from existing or new investors as the main reason for the shutdown.

He added that the COVID-19 pandemic has made the operational and fundraising environment “very difficult”.

Other factors included a prolonged period of weakening demand for certain financial products and services, particularly travel insurance.

However, GoBear CEO Adrian Chng previously said that while the pandemic has led to a decline in interest in travel insurance, GoBear has always seen growth in insurance and other loan products. .

According to the company, it expects current financial resources to be sufficient to honor its existing commitments to its customers, employees, suppliers and partners.

The business closure will be carried out in a phased and controlled manner over a short period of time and in accordance with local laws and regulations in the markets in which GoBear operates.

It is currently active in seven markets: Singapore, Hong Kong, Indonesia, Malaysia, the Philippines, Thailand and Vietnam.

165 employees will be made redundant as a result

GoBear also employs 165 people in six offices in Asia. Last September, it laid off 22 employees in the region due to the Covid-19 pandemic.

He assured that all employees will receive the required notice periods and salaries.

“GoBear made the difficult decision to shut down the business. Our goal was to improve the financial health of people across Asia and I am proud and grateful for the contributions all of our employees and partners have made to this mission, ”said Chng.

“It’s a difficult time for our employees, and our priority is to conduct the process with the utmost care and the best advice for our staff. We take our responsibility to our customers, employees, partners and suppliers very seriously and intend to meet our existing commitments to them as part of an orderly closure process. “

gobear app
Image Credit: TechCrunch

This closure news is definitely a shock as GoBear was recently hailed as one of Singapore’s booming startups, according to LinkedIn.

It managed to raise US $ 17 million in May at the height of the pandemic from existing investors, bringing its total funding to US $ 97 million.

GoBear then said the new funding would be used to expand its consumer financial services platform in Southeast Asia. It has even expanded its partnerships with companies such as Union Bank, Mambu and CredoLab to focus on lending services in Asia.

The startup was first launched in 2015 as a metasearch engine and has grown into a financial services and data platform providing consumers with a single platform to find and buy the product they need. .

Featured Image Credit: GoBear

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Jothi Venkat

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