Rooled is a leading financial consulting and outsourcing firm dedicated to empowering businesses with scalable financial solutions and expertise. Our services encompass a wide range of financial disciplines, designed to support companies at every stage of their growth journey. As financial partners, we specialize in helping businesses achieve financial stability, compliance, and informed decision-making.
In this case study, we delve into our successful partnership with Platzi, an innovative online education platform.
Platzi is a dynamic player in the edTech industry, offering a diverse range of courses in marketing, coding, business, and design. With a global reach, Platzi caters to over 80,000 students worldwide and maintains an impressive 70% course completion rate.
At the outset of our collaboration, Platzi faced a series of financial challenges. When they first approached Rooled, they were in their early years of operation, approximately two years into business. The platform was rapidly growing, but it was wrestling with financial accounting practices that were not aligned with Generally Accepted Accounting Principles (GAAP). Platzi primarily employed cash accounting, which lacked the robustness required to meet the evolving demands of their burgeoning online education platform.
Case Study Goal
The primary goal of this case study is to shed light on how Rooled’s strategic partnership with Platzi revolutionized their financial operations and facilitated their remarkable journey of scaling. Through this study, we aim to showcase the tangible benefits that Platzi accrued from our collaboration. From transitioning to accrual accounting and achieving GAAP compliance to facilitating a seamless shift to internal financial management, we demonstrate how Rooled’s tailored financial services played a pivotal role in empowering Platzi’s growth and success in the competitive edTech landscape.
Client Background and Initial Challenges
Platzi, an online education platform with a global presence, embarked on its journey towards revolutionizing digital education. When Platzi initiated its partnership with Rooled, it found itself at a crucial stage in its growth trajectory. Approximately two years into its operation, Platzi had rapidly evolved into a prominent player in the edTech industry. The platform was actively serving a diverse and engaged student base, boasting over 80,000 students worldwide. What set Platzi apart was its remarkable 70% course completion rate, reflecting its commitment to delivering effective and high-quality educational content.
However, amid this rapid growth and global expansion, Platzi encountered significant financial challenges that necessitated external financial consulting services. The core issue revolved around Platzi’s financial accounting practices, primarily employing cash accounting. While cash accounting might suffice for smaller and less complex operations, Platzi’s ambitions and evolving scale demanded a financial infrastructure that aligned with Generally Accepted Accounting Principles (GAAP).
Platzi recognized that to continue thriving and maintaining financial transparency in a highly competitive industry, they needed to transition from cash accounting to accrual accounting, implement GAAP compliance, and establish a financial framework capable of supporting their ever-expanding international reach. These challenges prompted Platzi to seek the expertise and guidance of external financial consulting services, ultimately leading them to partner with Rooled. Together, Platzi and Rooled embarked on a transformative journey to address these financial hurdles and position Platzi for sustainable growth and success.
Rooled’s Services and Impact
Throughout Platzi’s journey, Rooled played a pivotal role in addressing their evolving financial needs at each critical stage: Early Stage, Growth Stage, and Scaling Stage. Our services were tailored to cater to the unique challenges and opportunities presented during these phases.
Early Stage: Laying the Foundation for Financial Excellence
At the outset of our collaboration, Platzi was operating on cash accounting principles, which offered limited insight and adaptability for a rapidly growing and globally expanding edTech platform. Rooled recognized that a solid financial foundation was essential for sustainable growth. Our initial focus involved transitioning Platzi from cash accounting to accrual accounting. This shift not only enhanced Platzi’s financial accuracy but also laid the groundwork for comprehensive financial reporting and analysis.
To achieve this transition seamlessly, Rooled introduced Platzi to GAAP compliance, ensuring that their financial practices aligned with industry standards. This early-stage transformation set the stage for Platzi’s long-term financial stability and transparency. Rooled’s ability to adapt and tailor solutions to meet Platzi’s specific needs was instrumental during this critical phase.
Growth Stage: Navigating Complexity with Precision
As Platzi continued to grow and expand its reach, they encountered an array of financial complexities that required expert guidance. Rooled’s services evolved to encompass a broader spectrum of financial support. Platzi was no longer a startup but a thriving educational platform with monthly revenues steadily climbing. During this growth stage, Rooled worked closely with Platzi’s team members located across the world, facilitating collaboration in different languages to deliver the monthly close.
One of the significant achievements during this stage was Platzi’s capacity to handle extensive analytical work, a crucial aspect of managing financial growth effectively. Rooled played an integral role in streamlining this process, providing insights and data-driven decision-making support. This transition involved comprehensive due diligence and rigorous adherence to industry standards, all of which were expertly navigated with Rooled’s guidance.
Scaling Stage: Achieving Financial Milestones
The pinnacle of Platzi’s journey involved securing substantial funding, amounting to 60 million dollars. This significant milestone highlighted the strength of Platzi’s vision and potential. However, it also brought the need for increased financial scrutiny and transparency.
Rooled’s expertise shone brightly during the scaling stage, particularly when Platzi underwent a rigorous due diligence and audit process to secure the substantial funding. Rooled’s meticulous approach to financial management ensured that Platzi met all the requirements and demonstrated financial stability to investors. The successful acquisition of funds was a testament to the value Rooled brought to Platzi’s operations.
Value and Impact
Rooled’s services brought profound value to Platzi’s financial operations, stability, decision-making processes, and overall growth. By partnering with Rooled, Platzi was equipped with:
- Financial Accuracy: The transition from cash accounting to accrual accounting and GAAP compliance enhanced the accuracy of Platzi’s financial records, instilling confidence in stakeholders.
- Strategic Decision Support: Rooled’s expertise in financial analysis and reporting provided Platzi’s leadership with critical data-driven insights, enabling informed and strategic decision-making.
- Operational Efficiency: Platzi’s monthly financial close process was streamlined, improving efficiency and ensuring financial transparency.
- Global Collaboration: Rooled facilitated collaboration among international team members, breaking down language barriers and promoting effective financial management.
- Successful Funding Acquisition: Platzi’s achievement of securing 60 million dollars in funding was a direct result of Rooled’s financial expertise and rigorous adherence to industry standards.
In essence, Rooled’s unwavering commitment to adapting and tailoring our services to Platzi’s evolving needs played a fundamental role in enabling Platzi to thrive in the competitive edTech industry. The impact of this partnership extended beyond financial stability, empowering Platzi to fulfill its mission and continue offering high-quality education to a global audience.
Milestones and Achievements
Throughout Platzi’s journey, in collaboration with Rooled, the client achieved a series of significant milestones that not only showcased their growth but also underscored the pivotal role played by Rooled’s expertise, strategic guidance, and personalized solutions.
Transitioning to Accrual Accounting and GAAP Compliance
One of the initial milestones achieved in Platzi’s journey was the seamless transition from cash accounting to accrual accounting, coupled with achieving GAAP compliance. This transformation laid a solid foundation for Platzi’s financial operations, enabling accurate reporting and instilling confidence in stakeholders.
Handling Rapid Growth with Efficiency
As Platzi rapidly expanded its reach and revenue, the challenges grew in complexity. During this phase, the achievement of monthly financial close became a significant milestone. Rooled’s guidance and expertise streamlined the process, making it not only efficient but also transparent. This achievement highlighted Platzi’s capacity to manage growth effectively with the support of Rooled’s tailored financial solutions.
In the midst of growth, Platzi recognized the critical need for robust analytical capabilities. A significant milestone was reached as Platzi’s team gained the ability to delve deep into their financial data, turning it into actionable insights. Rooled’s strategic guidance played a crucial role in enabling Platzi to harness the power of financial analysis, which in turn informed their strategic decision-making processes.
Successful Funding Acquisition
One of the most notable achievements in Platzi’s journey was the successful acquisition of 60 million dollars in funding. This milestone highlighted Platzi’s vision and potential as a leading edTech platform. However, it was also a testament to Rooled’s expertise and diligent adherence to industry standards. Rooled’s support ensured that Platzi navigated a rigorous due diligence and audit process, showcasing their financial stability and transparency to investors.
Personalized Solutions and Expert Guidance
Throughout these milestones and achievements, Rooled’s impact was consistently driven by their ability to provide personalized solutions tailored to Platzi’s unique needs. Our expertise in financial management, strategic guidance, and hands-on approach empowered Platzi to overcome challenges and seize opportunities at every stage of their journey.
In essence, Rooled’s partnership with Platzi was characterized by a dynamic synergy between strategic financial guidance and actionable solutions. Each milestone reached was a testament to the effectiveness of our collaboration, highlighting how Rooled’s expertise was not just an asset but a catalyst for Platzi’s success.
Transition to In-House Finance Function
As Platzi continued its remarkable growth trajectory, the time came to transition from relying on external financial consulting services to establishing a robust in-house finance function. This strategic move marked a significant step in Platzi’s evolution, and it was executed with careful planning and support from Rooled.
Considerations and Strategic Planning
The decision to transition to an in-house finance function was driven by Platzi’s desire for greater autonomy and control over their financial operations. However, this transition required thoughtful consideration of various factors, including:
- Expertise: Identifying and recruiting the right talent to manage financial functions effectively was a critical consideration. Rooled provided guidance on the skill sets and roles needed to build a capable finance team.
- Technology Infrastructure: Ensuring that Platzi had the necessary financial systems, tools, and technologies in place to support in-house financial management was another pivotal aspect. Rooled’s expertise in financial platforms and technology played a crucial role in this regard.
- Knowledge Transfer: To ensure a smooth transition, Rooled facilitated knowledge transfer sessions, equipping Platzi’s internal team with the insights and best practices they needed to take over financial responsibilities confidently.
- Compliance and Reporting: Rooled’s guidance was instrumental in setting up internal controls, compliance measures, and reporting processes that aligned with industry standards. This ensured that Platzi’s financial operations remained transparent and compliant even after the transition.
The transition from relying on Rooled’s services to establishing an in-house finance function was executed in a phased manner. This approach allowed for a seamless transfer of responsibilities and minimized disruptions to Platzi’s operations. Key phases of the transition included:
- Skill Development: Platzi’s internal team underwent comprehensive training and skill development, guided by Rooled’s financial experts.
- Technology Integration: Rooled assisted in the integration of financial systems and technologies that would support Platzi’s in-house finance team’s operations.
- Gradual Handover: Rooled continued to provide support and guidance as Platzi’s team gradually took over financial functions, ensuring a smooth handover.
- Ongoing Collaboration: Post-transition, Rooled maintained an open channel of collaboration and support, serving as a valuable resource for any complex financial challenges that arose.
Successful In-House Finance Function
The transition to an in-house finance function was ultimately a success, marking a new phase of Platzi’s growth journey. With Rooled’s support and strategic guidance, Platzi not only achieved financial autonomy but also established a capable and proficient finance team capable of managing the intricacies of their financial operations effectively.
The successful transition to an in-house finance function highlighted the flexibility and adaptability of Rooled’s solutions. It showcases our commitment to empowering clients like Platzi to not only grow but also evolve their financial capabilities in line with their long-term vision.
Benefits of the Partnership
The enduring partnership between Platzi and Rooled bore fruit in multiple ways, resulting in a myriad of benefits that were aligned with Rooled’s value proposition and had a profound impact on Platzi’s operations and growth.
- Financial Expertise and Stability
Rooled’s financial expertise proved instrumental in guiding Platzi through various stages of growth. From the early days when Platzi operated with cash accounting to their eventual transition to accrual accounting and GAAP compliance, Rooled’s support ensured financial stability. This stability allowed Platzi to make informed decisions, maintain transparency, and confidently navigate the complexities of financial management.
- Scalability and Growth
One of the central objectives of Platzi’s partnership with Rooled was to achieve scalable financial solutions. As Platzi’s monthly revenue soared, Rooled’s strategies and solutions played a pivotal role in facilitating this growth. Rooled’s innovative API integration from Platzi’s platform to NetSuite ensured that all orders, transactions, and payments were logged immediately. This automation not only streamlined processes but also enabled Platzi to handle the influx of revenue with precision, setting the stage for further expansion.
- Streamlined Analytics and Due Diligence
Rooled’s commitment to delivering tailored financial solutions extended to providing Platzi with comprehensive analytical support. The monthly close process was a collaborative effort, with Rooled working closely with Platzi’s team members across the globe, bridging language barriers and ensuring a smooth monthly close. This streamlined analytics was particularly critical during due diligence processes, such as the funding milestone of $60 million. Rooled’s expertise ensured that Platzi’s financials were well-prepared and transparent, instilling confidence in investors and stakeholders.
- International Financial Management
Platzi’s international operations added layers of complexity to its financial management, with different financial systems and regulations across various currencies and countries. Rooled’s solutions and support helped Platzi navigate this intricate landscape seamlessly. Whether it was managing payments through international platforms, handling time sheets, or overseeing payments to contractors worldwide, Rooled’s expertise ensured that Platzi’s financial operations remained efficient and compliant.
- Adaptive Solutions
Perhaps one of the most significant benefits of the partnership was Rooled’s ability to adapt to Platzi’s evolving needs. As Platzi considered transitioning to different financial platforms, Rooled displayed remarkable flexibility and dedication. We not only accommodated Platzi’s preferences but also invested in learning new systems to provide continuous support. This adaptability ensured that the partnership remained dynamic and responsive to Platzi’s changing requirements.
In essence, the partnership between Platzi and Rooled epitomized the essence of a successful collaboration. Rooled’s core value proposition, centered around providing scalable financial solutions and expertise, was consistently demonstrated throughout the engagement. The benefits derived from this partnership transcended financial management, influencing Platzi’s operations, decision-making, and global growth positively. Rooled’s dedication to Platzi’s success left an indelible mark on their journey, reflecting the true value of a strategic partnership founded on trust and expertise.
Challenges and Overcoming Obstacles
Platzi’s journey from its early stages to becoming a global leader in online education was marked by numerous challenges and obstacles. However, the resilience and collaboration between Platzi and Rooled allowed them to tackle these hurdles and maintain financial stability throughout the scaling journey.
- Complex International Operations
One of the primary challenges faced by Platzi stemmed from its international operations. Managing financial systems, regulations, and compliance across multiple currencies and countries presented a formidable obstacle. Rooled’s expertise played a pivotal role in guiding Platzi through this intricate landscape. Our deep understanding of international financial management ensured that Platzi’s operations remained efficient and compliant across borders.
- Internal Turbulence
During their scaling journey, Platzi encountered internal turbulence, which is not uncommon for rapidly growing companies. Managing a surge in revenue and expanding their global presence led to complexities in financial operations. Rooled’s support proved invaluable during these times, as our team worked closely with Platzi to streamline processes and maintain financial stability, ensuring that internal challenges did not hinder progress.
- Transitioning Challenges
As Platzi considered transitioning to different financial platforms, challenges emerged in terms of system integration and adaptation. Rooled demonstrated remarkable adaptability and commitment during these transitions. The team not only helped Platzi navigate these changes smoothly but also invested in learning new systems to provide continuous support. This ensured a seamless transition without compromising financial stability.
- Different Financial Systems and Regulations
The diversity of financial systems and regulations in different currencies and countries posed a constant challenge. Platzi had to navigate these complexities to ensure compliance and transparency. Rooled’s guidance and solutions were instrumental in helping Platzi maintain a structured approach to handling these intricacies.
- Temporary Transition Away from Rooled
At one point during their journey, Platzi decided to taper off their reliance on Rooled’s services. However, a year later, it became apparent that this transition had not yielded the expected results. In a remarkable testament to their partnership, Platzi returned to Rooled for continued support, underscoring the enduring value Rooled provided.
Throughout these challenges, Rooled’s role was pivotal in providing Platzi with the expertise, guidance, and solutions needed to overcome obstacles and maintain financial stability. Our adaptability, international financial acumen, and commitment to Platzi’s success shone through. This collaborative approach allowed Platzi to focus on its core mission of providing effective online education while Rooled managed the financial intricacies, ensuring that challenges became stepping stones to further growth and success.
The partnership between Platzi and Rooled has been nothing short of transformative. From our initial collaboration, marked by Platzi’s early-stage growth, to their journey through the challenges of scaling, this partnership has exemplified the power of expert financial guidance and strategic support.
Empowering Growth and Success
Platzi, an online education platform with global ambitions, faced numerous hurdles as it scaled to become a leader in its industry. However, the consistent thread through these challenges was Rooled’s unwavering support. Rooled’s expertise and strategic insights played a pivotal role in empowering Platzi’s growth. Our financial acumen ensured that Platzi could focus on its core mission—providing effective online education to students worldwide—while navigating the intricacies of international operations and financial compliance.
Stepping Stones to Milestones
Milestones that once seemed distant became achievable with the collaborative efforts of Platzi and Rooled. The transition from cash accounting to accrual, achieving GAAP compliance, and managing the complexities of international operations were all critical milestones that contributed to Platzi’s remarkable success. Rooled’s solutions and guidance were instrumental at every step, making these achievements possible.
A Return to Collaboration
Even when Platzi briefly explored the path of transitioning away from Rooled’s support, the enduring value of their partnership became evident. Platzi’s decision to return to Rooled underlines the unparalleled expertise and commitment that Rooled brings to its clients. It’s a testament to the partnership’s strength and the results it consistently delivers.
The Value of Rooled
The impact of Rooled’s partnership on Platzi’s journey is immeasurable. It goes beyond financial management; it’s about empowering success and growth. By partnering with Rooled, Platzi not only achieved scalable financial solutions but also gained a trusted ally in making informed decisions. The value of working with Rooled extends far beyond the numbers; it encompasses the confidence and stability needed to focus on what truly matters—achieving their mission and serving their students.
Platzi’s story is a testament to the transformative power of strategic financial guidance, and it serves as a compelling example of how Rooled enables its clients to scale new heights. As we celebrate the achievements of this partnership, we look forward to continuing to empower organizations like Platzi in their pursuit of success and growth, one milestone at a time.