Rocket Internet SE
Rocket Internet opts for a flexible consolidation solution with integrated currency conversion
- Introducing a professional software tool for preparing consolidated financial statements
- Making use of consolidation wizards
- Integrating numerous companies doing business in foreign currencies
- Mapping of any number of parallel balance sheet and P&L structures
We used LucaNet to prepare Rocket Internet's first ever consolidated financial statements – and are really very happy with the results. I was already familiar with the software from my old company, so I was already aware of what the tool can do. The consolidated profit and loss statement, consolidated balance sheet, consolidated statement of cash flows and disclosures can all be created quickly when the consolidated financial statements are prepared. At the same time, the wizards provide numerous automation solutions for consolidation purposes. What’s more, the integrated currency conversion feature helps us to map our many international investments correctly.
As Rocket Internet has a highly complex, constantly changing group structure, we need software that can give us very flexible support for our consolidated accounting in these circumstances. With its many different functions, LucaNet is the ideal solution for us. This is especially true when it comes to consolidation within a group with numerous companies in other countries. Implementation ran smoothly, bringing us clear savings in terms of time and costs. The staff at LucaNet are also genuine specialists in their fields, meaning we have benefited from their expert advice.
About the company
- Berlin - Germany
- 30.000 (worldwide)
Rocket Internet SE and many of its affiliated companies prepare their consolidated financial statements using LucaNet software thanks to its intuitive operation and pioneering technology. The software tool allows figures from the group's up to 200 fully consolidated subsidiaries to be processed clearly, consistently and to a high quality standard.
Rocket Internet's mission is "to become the world’s largest Internet platform outside of the United States and China". Investments in such well-known startups as foodpanda, Delivery Hero, Westwing, Home24 and HelloFresh are testament to the success of its business strategy. As an Internet expert, the company identifies and builds on tried-and-tested business models and transfers them to new, as-yet untapped markets, where its investments are to develop into market-leading online firms. Now a listed company, Rocket was set up in Berlin in 2007 by brothers Marc, Oliver and Alexander Samwer. Today it employs over 30,000 staff at its affiliated companies, who work in more than 110 countries on five continents.
Developing a Group Accounting department
Rocket Internet's rapid growth meant that its internal financial processes needed to be restructured and enhanced, which included creating a Group Accounting department from scratch. A financial software package that guided users reliably through the entire consolidation process with intuitive operation and innovative technology also had to be found for preparing consolidated financial statements for the first time.
Reliable consolidation for hundreds of companies
"We have hundreds of companies spread across several sub-groups to consolidate. You can't do this in MS Excel without getting any errors. Since I was already familiar with LucaNet from my old company, I knew that I could completely rely on this tool," explains Imke Ramb, Head of Group Accounting – International at Rocket Internet SE. "LucaNet's certified consolidation software lets you prepare consolidated financial statements reliably in accordance with various accounting standards. Your consolidated profit and loss statement, consolidated balance sheet, consolidated statement of cash flows and disclosures are presented transparently. Having a reliable way of mapping as many companies as we need is especially important to us as our portfolio of investments also changes frequently."
The LucaNet software was installed quickly and successfully. The companies based in Germany and Luxembourg are mapped in the Datev and Addison Tsenit source systems, necessitating the use of corresponding interfaces with the LucaNet software. Data for the foreign companies are imported using Excel reporting packages. This covers the transaction figures and balances for each ledger account, the asset, provision and credit analyses, selected disclosures and the intercompany drill down.
Wizards support processes at Rocket Internet
Preparing consolidated financial statements at Rocket Internet has proved highly complex due to the group's many investments, with sub-groups another factor to take into account. The consolidated financial statements are prepared in accordance with IFRS.
"LucaNet gives us the best possible support during the consolidation process," says Paul Stander, Head of Group Accounting – National at Rocket Internet SE. "This system let us implement the steps in the consolidation process reliably, while the wizards for debt consolidation and expense and revenue consolidation make the individual sub-processes run automatically. LucaNet also provides a useful posting wizard for consolidating minority interests, which we use on every reporting date."
The software allows any number of parallel balance sheet and P&L structures to be mapped. For instance, Rocket Internet and its sub-groups can prepare balance sheets under the German Commercial Code and under IFRS at the same time as well as profit and loss statements based on both the cost of sales and the nature of expense methods.
Currency conversion for foreign investments
As it has shareholdings all around the world, Rocket Internet needs a professional software tool that can handle a large number of currency conversions in a transparent way. LucaNet enables amounts to be converted automatically and provides a clear illustration of closing-date, average, year-to-date and historical exchange rates.