Financial services firm GoBear on Tuesday announced that it will close the business due to its inability to "raise more funds to continue operations" amid the global pandemic.

In a statement, the fintech firm said Covid-19 has made the operating and fund-raising environment "very challenging", despite the firm having made progress in its growth and transformation plans last year.

The factors included a prolonged period of weakened demand for some financial products and services, in particular travel insurance.

GoBear said the business closure will be conducted in a "phased and controlled" manner over a "short time frame" and in adherence with local laws and regulations across the markets in which it operates.

Headquartered in Singapore, GoBear employs 165 staff in six offices across Asia. Employees will be provided their required notice periods and salaries. The firm said it intends to fulfil existing commitments to employees, partners and vendors, and work with the relevant authorities to ensure adherence to local laws and regulations.

Its chief executive Adrian Chng said: "GoBear has made the difficult decision to close the business. Our purpose has been 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.

"This is a difficult time for our employees, and our priority is to conduct the process with the utmost care and guidance to our staff. We take our responsibility to our customers, employees, partners and vendors very seriously and we intend to fulfil our existing commitments to them as part of an orderly business closure process."

Last September, the firm laid off 22 employees, or about 11 per cent of its total workforce, on the back of the grim business environment.

GoBear was founded in 2015 and has served over 55 million users searching for more than 2,000 personal finance products.

THE BUSINESS TIMES