Financial Platform GoBear Shuts Down
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The startup said the global pandemic has created a challenging operating environment, and it is unable to raise additional funds from existing or new investors.
Singapore-based financial comparison and data platform GoBear has announced that it will begin a formal process to shut down operations, after a prolonged period of weakened demand for some financial products and services, in particular travel insurance, as a result of the Covid-19 pandemic.
GoBear has made the difficult decision to close the business. Our purpose was to improve the financial health of people across Asia and I’m proud and grateful for the contributions that all our employees and partners have made towards that mission, Adrian Chng, CEO of GoBear, said in a statement on Tuesday.
The company said its financial resources is likely to be sufficient to fulfill its existing commitments to customers, employees, suppliers and partners, and that it will work with the relevant authorities to ensure adherence to local laws and regulations.
GoBear, which was founded in 2015, operates a platform for insurance, banking and lending products in seven markets in Southeast Asia. The startup’s founders, chief technology officer Ivonne Bojoh and chief commercial officer Marnix Zwart, departed in November 2019.
In September 2020, GoBear announced that it would cut 22 staff across its operations, product, and technology teams – 11 percent of its global workforce of 200.
The platform raised a total of $97 million in funding, including $17 million from long-term investors, Dutch venture capital firm Walvis Participaties and life insurance, pensions and asset management firm Aegon as recently as May 2020. The same month, it acquired Singapore-based digital lending platform AsiaKredit.
Questions & Answers
Q.What primary reasons led to GoBear's decision to shut down operations?
What primary reasons led to GoBear's decision to shut down operations?
The startup cited a challenging operating environment caused by the global pandemic. This led to weakened demand for some financial products, particularly travel insurance, and an inability to raise additional funds from investors.
Q.Will GoBear have enough money to cover its outstanding commitments?
Will GoBear have enough money to cover its outstanding commitments?
The company stated its financial resources are likely sufficient to fulfil existing commitments. This includes obligations to customers, employees, suppliers, and partners as it formally closes down.
Q.When did GoBear last raise money before announcing its closure?
When did GoBear last raise money before announcing its closure?
GoBear last raised funding as recently as May 2020. It secured $17 million from long-term investors, including Dutch venture capital firm Walvis Participaties and Aegon.
Q.Did any key management figures leave GoBear before the shutdown announcement?
Did any key management figures leave GoBear before the shutdown announcement?
Yes, the startup's founders, chief technology officer Ivonne Bojoh and chief commercial officer Marnix Zwart, departed in November 2019, over a year before the closure announcement.
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