Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 33

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 33
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 customers’ operating systems. While no such incidents have occurred to date, there can be no assurance
that they will not occur in the future. For example, a third party could attempt to introduce software modifications providing incorrect
location data and functionality or the deletion of data. Damage to our customers’ telematics devices as a result of such incidents
could only be remedied through direct servicing of their installed telematics devices by trained employees resulting in significant costs,
particularly if the incidents were to be widespread. Moreover, such incidents could expose us to various claims by our customers, the
outcome of which would be uncertain. Third party interference with our over-the-air transmission of firmware or with our customers’
telematics devices during such processes could have a material adverse effect our business, financial condition and results of operations.

Any significant disruption
in service on our SaaS platform or in our computer systems, through cybersecurity breaches, computer viruses or otherwise or disruption
of our platform, could damage our reputation and result in a loss of customers, which would harm our business and results of operations.

Our brand, reputation, and ability
to attract, retain, and serve our customers are dependent upon the reliable performance of our service and our customers’ ability
to access our solutions at all times. Our customers rely on our solutions to make operating decisions related to their fleet, as well
as to measure, store and analyze valuable data regarding their businesses. Our solutions are vulnerable to interruption and our data centers
are vulnerable to damage or interruption from human error, intentional bad acts, computer viruses or hackers, earthquakes, hurricanes,
floods, fires, war, terrorist attacks, power losses, hardware failures, systems failures, telecommunications failures, and similar events,
any of which could limit our customers’ ability to access our solutions. Prolonged delays or unforeseen difficulties in connection
with adding capacity or upgrading our network architecture may cause our service quality to suffer. Any event that significantly disrupts
our service or exposes our data to misuse could damage our reputation and harm our business and results of operations, including reducing
our revenue, causing us to issue credits to customers, subjecting us to potential liability, increasing our churn rates, or increasing
our cost of acquiring new customers.

We host our solutions and serve
all of our customers from our network servers, which are principally located at third-party data center facilities in South Africa, Singapore,
the Netherlands, United Arab Emirates and France. While we control and have access to our servers and all of the components