Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 19

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 19
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 or vendors could
fail to provide equipment or service on a timely basis, or fail to meet our performance expectations, for a number of reasons, including,
for example, disruption to the global supply chain as a result of geopolitical factors, effects of a pandemic, natural disasters or the
potential impacts of global climate change. The introduction of tariffs by the new US administration may have significant ripple effects
on global supply chains, requiring manufacturers and supply chain leaders to adjust sourcing strategies, manage cost fluctuations, and
rethink global trade dependencies. This may result in higher prices of certain components and may lead to growth constraints on specific
product categories.

Although we have extended our
supply orders in terms of lead times and have made pre-emptive purchases to build out our inventory, we cannot guarantee that we will
have sufficient inventory for our needs at all times. Any interruption or delay in the supply of any of these devices or components, or
the inability to obtain these devices or components from alternate sources at acceptable prices and within a reasonable amount of time,
could harm our ability to onboard new customers.

Our SaaS platform relies on specific
third-party software and any inability to license or use such software from third parties could render our platform inoperable.

We rely on software and other
intellectual property licensed from third parties, including mapping software, business intelligence tools and data from third party vendors
such as Google, HERE and Sisense to develop and provide solutions to our customers. In addition, we may need to obtain future licenses
from third parties to use software or other intellectual property associated with our solutions. We cannot assure you that these licenses
will be available to us on acceptable terms, without significant price increases or at all. Any loss of the right or inability to obtain
the right to use any such software or other intellectual property required for the development and maintenance of our solutions could
result in interruptions in the provision of our solutions until equivalent technology is either developed by us, or, if available from
others, is identified, obtained, and integrated, which could harm our business.

Our use of open-source software
may pose particular risks to our proprietary software and systems.

We use open-source software in
our proprietary software and systems and intend to continue using open-source software in the future. The terms of many open-source licenses
to which we are subject have not been interpreted by European, Singaporean, South African or U. S. courts or courts of other jurisdictions,
and there is a risk that those licenses could be construed in