Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 89

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 4A
Chunk 89
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 subscription revenue through the acquisition
of new subscribers and the retention and expansion of existing subscriber relationships. We aim to drive this growth by continuously enhancing
our platform with innovative features and offering value-added services that support customer adoption, engagement, and long-term retention.

We measure our success by our
net subscriber base growth. We calculate net subscriber growth as the difference between gross subscriber additions and gross subscriber
churn over a given period.

Customer Growth and Customer Retention

We rely on our proprietary internal
systems and processes as well as our own sales teams to drive customer growth and minimize third-party risks in acquiring customers. Customer
growth is a key driver of subscriber growth (mobile assets under subscription contracts).

We offer our SaaS platform to
a broad range of customers seeking a variety of mobility solutions. Neither our ability to acquire nor retain customers is dependent on
any specific industry, and we have not historically been materially exposed or vulnerable to cyclical or niche business sectors. Moreover,
as a result of this industry agnostic approach and our generally consistent average revenue per subscriber (“ ARPU”) in each
region, our customer mix has not materially affected our results of operations. We do, however, monitor our customer mix to ensure that
our sales and marketing efforts continue to be effective and evaluate exposure to customer concentration or other material risks in our
subscriber base.

We seek to capitalize on growth
opportunities in numerous regional markets, with subscribers currently located in more than 20 countries worldwide. In addition to driving
subscription revenue growth, we believe that our presence across multiple geographic markets and our exposure to multiple industry sectors
mitigates risk during periods of changing economic conditions.

Foreign Currency Fluctuations

We conduct business in multiple
countries and currencies, and as a result, the Group is exposed to currency risk to the extent that sales, purchases, and borrowings of
the foreign operations are denominated in a currency other than the respective functional currencies of Group companies (comprising the
company and its subsidiaries). The functional currencies of Group companies are primarily the ZAR, USD, Euro (EUR), Thai baht (THB), the
Singapore dollar (SGD) and Polish zloty (PLN).

(Refer to the Risk Factors note on foreign currencies on
page 23 and Note 29.2 (c) on Currency Risk on page F-47)

Key Business Metrics

We review a number of operating
and financial metrics, including the following key business metrics, to evaluate the performance of our business, identify trends