Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 10

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 10
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vestment in infrastructure, in particular, electricity, the South African government owned power utility, Eskom,
continues electricity rationing and planned blackouts due to its inability to meet electricity demand. Although we have made contingency
arrangements for use of generators at our various locations, the lack of a constant, reliable supply of electricity could have a material
adverse effect on our business, financial condition and results of operations.

Even with our disaster recovery
arrangements, our services could be interrupted. Our suppliers and customers are also subject to the risk of catastrophic events. In those
circumstances, our ability to deliver our services in a timely manner, as well as the demand for our solutions, may be adversely impacted
by factors outside our control. If our systems were to fail or be negatively impacted as a result of a natural disaster, pandemic or other
catastrophic event, the ability to deliver our services to our customers would be impaired, our reputation could suffer and we could be
subject to contractual penalties.

The global market for SaaS
fleet management solutions is highly fragmented and competitive. If we do not compete effectively in such markets, our operating results
may be harmed.

The global market for SaaS fleet
management solutions, including tracking and mobility solutions, is highly fragmented, competitive and rapidly changing. Competition in
such markets is based primarily on the level of difficulty in installing, using and maintaining solutions, total cost of ownership, product
performance, functionality, customer service, interoperability, brand and reputation, distribution channels, industries and the financial
resources of the vendor. We expect competition in such markets to intensify in the future with the introduction of new technologies and
market entrants.

The global market for SaaS fleet
management solutions is highly competitive. Our growth will depend, in part, on a combination of the continued growth in the market for
these solutions, our ability to increase our market share and our customers’ continued operation in the regions in which we operate.
We compete with a number of companies in each of the geographic markets in which we operate, some of which have established sizable market
shares in the relevant markets. We expect competition to intensify in the future with the introduction of new technologies, the use of
mobile devices and new market entrants from outside the telematics industry, such as enterprise software vendors or large technology companies
expanding into the space. As competition intensifies, we expect that price competition for telematics solutions, including SaaS fleet
management solutions will