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

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 25
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 and we may be unable to hire or retain sufficient numbers of qualified
employees. If we fail to attract, hire and train new employees, or fail to retain, focus and motivate our current employees, it could
have a material adverse effect on our business and growth prospects.

Our corporate culture has
contributed to our success, and if we cannot maintain this culture, we could lose the innovation, creativity and teamwork fostered by
our culture, which could harm our business.

We believe that our vertically
integrated and customer-centric corporate culture is key to our success, which we believe fosters innovation, creativity and teamwork
among our employees. As we continue to grow, we may encounter difficulties in maintaining or adapting our culture to sufficiently meet
the needs of our future and evolving operations, and we must be able to effectively integrate, develop and motivate a growing number of
employees. In addition, our ability to maintain our culture as a publicly listed company in the United States, with the attendant changes
in policies, practices, corporate governance and management requirements may be challenging. Any failure to preserve our culture, particularly
if we are unable to preserve our culture across the various markets in which we operate, could also negatively affect our ability to retain
and recruit employees, maintain our performance or execute on our business strategy, which could have a material adverse effect on our
business, financial condition, results of operations and prospects.

We may expand by acquiring
or investing in other companies, which may divert our management’s attention, result in dilution to our shareholders, and consume
resources that are necessary to sustain our business.

We may in the future acquire complementary
platforms, solutions, technologies, or businesses. We also may enter into relationships with other businesses to expand our portfolio
of solutions or our ability to provide our solutions in foreign jurisdictions. Negotiating these transactions can be time-consuming, difficult
and expensive, and our ability to complete these transactions may often be subject to conditions or approvals that are beyond our control.
Consequently, these transactions, even if undertaken and announced, may not close.

An acquisition, investment, joint
venture, alliance or new business relationship may result in unforeseen operating difficulties and expenditures. In particular, we may
encounter difficulties assimilating or integrating the businesses, technologies, solutions, employees, or operations of acquired companies,
particularly if the key employees of the acquired company choose not to work for us, or display a conflicting corporate culture or work
ethic, the acquired company’s technology is not easily adapted