Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 21

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 21
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 to enforce the terms of the applicable open-source license. These claims
could result in litigation that could be costly to defend, have a negative effect on our business, financial condition and results of
operations, and could require us to purchase a costly license, publicly release the affected portions of our source code, be limited in
or cease the sale or use of the implicated software unless and until we can re-engineer such software to avoid infringement or change
the use of, or remove, the implicated open-source software, which could require us to devote additional research and development resources,
or take other remedial actions.

In addition to risks related to
license requirements, use of certain open-source software can lead to greater risks than use of third-party commercial software, as open-source
licensors generally do not provide warranties, indemnities or other contractual protections with respect to the software (for example,
non-infringement or functionality). Some open-source projects have known vulnerabilities and architectural instabilities and are provided
on an “as-is” basis which, if not properly addressed, could negatively affect the performance of our product. Our use of open-source
software may also present additional security risks because the source code for open-source software is publicly available, which may
make it easier for hackers and other third parties to determine how to breach our website, our software platform and systems that rely
on open-source software.

Any of these risks could be difficult
to eliminate or manage, and, if not addressed, could have a material adverse effect on our business, financial condition, results of operations
and prospects.

Risks Relating to Our Growth Strategy

We have experienced growth
in recent periods. If we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of
service or address competitive challenges adequately.

We increased the number of our full-time employees from 4,387 as at
February 29, 2024 to 5,711 as at February 28, 2025. Our subscription revenue increased from ZAR 3,535.8 million for the financial year
ended February 29, 2024 to ZAR 4,068.2 million for the financial year ended February 28, 2025 and our total subscribers increased from
1,971,532 as at February 29, 2024 to 2,302,236 as at February 28, 2025. Our growth has placed, and may continue to place, significant
pressure on