Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 31

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 31
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 penalized
or precluded from carrying on our previous activities.

Our software platform may
contain undetected defects or software errors, which could result in damage to our reputation, market rejection of our products, or adversely
affect our business, financial condition and results of operations.

Our continued growth depends in
part on the ability of our existing and potential customers to access our solutions and platform capabilities at any time and within an
acceptable period of time. We have experienced, and may in the future experience, disruptions, outages, and other performance problems
due to a variety of factors, including infrastructure changes, introductions of new functionality, human or software errors, capacity
constraints due to an overwhelming number of users accessing our platform simultaneously, denial of service attacks, or other security-related
incidents. We must update our SaaS platform quickly to keep pace with the rapidly changing market including the third-party software and
devices with which our solutions integrate, and we have a history of frequently introducing new versions. Our solutions could contain
undetected errors or defects, especially when first introduced or when new versions are released that are difficult to detect and correct
despite third-party testing. Our solutions, including software, may not be free from errors or defects, which could result in damage to
our reputation or a material adverse effect on our results of operations.

It may become increasingly difficult
to maintain and improve our performance, especially during peak usage times and as our solutions and platform capabilities become more
complex and our user traffic increases. If our platform is unavailable or if our users are unable to access our solutions and platform
capabilities within a reasonable amount of time or at all, we may experience a loss of customers, lost or delayed market acceptance of
our platform and solutions, delays in payment to us by customers, harm to our reputation and brand, legal claims against us, and the diversion
of our resources. In addition, to the extent that we do not effectively address capacity constraints, upgrade our systems as needed and
continually develop our technology and network architecture to accommodate actual and anticipated changes in technology, our business,
financial condition and results of operations may be adversely affected.

The operation of our hardware
is controlled by the firmware loaded on the hardware. We generally provide firmware updates to our customers by “over-the-air”
wireless communication directly to our customers’ telematics devices. If the firmware does not function as expected and prevents
the uploading of updated firmware, it would require direct servicing of the installed on-board computer by