How a start-up like Astroscale reduced its consolidation costs by 80%

Success story Astroscale

For a finance team in a start-up, managing how cash is used is of utmost importance. As Astroscale rapidly expands across the globe, the finance team now requires an affordable solution that can help them with their growing consolidation complexities, while allowing them to effectively monitor their burn rates at their fingertips. By engaging LucaNet, Astroscale is now able to achieve all of these using a single software.

“We couldn’t do monthly consolidation prior to using LucaNet. Everything was quarterly basis. With LucaNet, we are now able to report monthly, and also save around 80% of costs. LucaNet is also very intuitive and user-friendly.”

Ai Makino
Chief Information Officer

How Astroscale uses LucaNet software:

  • Automated generation of monthly and quarterly consolidated statements
  • Monitoring and reporting of KPIs such as burn rates
  • Comparison of budget vs actual figures

About the enterprise

Astroscale is on a mission to create sustainable space systems and mitigate the growing and hazardous build-up of debris in space. In other words, they are “space sweepers”! Headquartered in Japan, Astroscale has an international presence with subsidiaries in the United Kingdom, the United States, Israel and Singapore.

Business Processes

logo-astroscale

Industry:

Production/Industry

Core Business:

Aerospace

Headquarter city:

Tokyo (Japan)

Locations:

Japan, United Kingdom, United States, Israel and Singapore

Employees:

120

Website:

https://astroscale.com/

The challenge

Outsourced consolidation – costly and limited 

When Astroscale first started on consolidation, the work was outsourced to an external party. Things were going well until the company grew rapidly over a short period. Naturally, the consolidation works became increasingly complex, resulting in higher costs and time from the third party. To limit costs, Astroscale had to make do with only quarterly reporting. That became a problem for the management as they had limited visibility on the financial health of the company and for a fast-growing company like Astroscale, this limited their ability to make prompt strategic decisions.

Tracking of burn rate for a fast- growing startup

Additionally, it was important for Astroscale to closely monitor their financial health for both the internal stakeholders as well as external investors. As a startup, burn rate is one of the most important KPIs to ensure the sustainability of the business. Tracking of revenue and expenses were previously conducted in a cumbersome, manual and slow process.

astroscale satelite

The solution 

Scalable and cost-efficient consolidation process

With the help of LucaNet, Astroscale was able to set up a full self-serviceable consolidation process for a lean team of only 2 users. The team can now get the consolidation done in a few days and generate monthly consolidation reports. More importantly, these additional reports are generated at no additional cost and are full-customisable according to various reporting needs. This allowed Astroscale to do more with consolidation and reporting while enjoying 80% in cost savings.

Efficient monitoring of financial health as a startup

Astroscale is also able to generate custom reports including key financial indicators to track the company’s burn rate. Within a few clicks, items such as labour costs, office expenses, purchase of PPE and other relevant costs are incorporated into reports for the finance team to obtain a transparent view of their financial performance. These reports can be generated easily on-demand, providing the firm with error-free information on their financial data, allowing them to manage their cash efficiently. When asked about her experience working with LucaNet, Ai Makino, Chief Information Officer of Astroscale comments: “The reason we decided to use LucaNet was the fact that the staff was very approachable and responsive. From the staff, we felt that we can build a great partnership with LucaNet. I highly recommend LucaNet to anyone who needs to do consolidation on a global base with various entity levels.”

How LucaNet software benefits Astroscale:

  • 80% cost savings
  • Efficient tracking of burn rate and financial performance through customisable reports
  • Creations and tracking of actual vs budgets on a single easy-to-use platform
80 %

cost savings on consolidation

Further references from the industry Production/Industry