Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 35

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 35
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 platform capabilities become
more complex and our user traffic increases. If our solutions and platform capabilities are unavailable or if our users are unable to
access our solutions and platform capabilities within a reasonable amount of time or at all, we may experience a loss of customers, lost
or delayed market acceptance of our platform and solutions, delays in payment to us by customers, harm to our reputation and brand, legal
claims against us, and the diversion of our resources. The systems we rely upon also remain vulnerable to damage or interruption from
a number of other factors, including access to the internet, the failure of our network or software systems, or significant variability
in visitor traffic on our product websites, earthquakes, floods, fires, power loss, telecommunication failures, computer viruses, human
error and similar events or disruptions. Some of our systems are not fully redundant and our disaster recovery planning is not sufficient
for all eventualities. Our systems are also subject to intentional acts of vandalism. Despite any precautions we may take, the occurrence
of a natural disaster, a decision by any of our third-party hosting providers to close a facility we use without adequate notice for financial
or other reasons, or other unanticipated problems at our hosting facilities could cause system interruptions and delays, and result in
loss of critical data and lengthy interruptions in our services.

In addition, to the extent that
we do not effectively address capacity constraints, upgrade our systems as needed and continually develop our technology and network architecture
to accommodate actual and anticipated changes in technology, our business, financial condition and results of operations may be adversely
affected.

Cybersecurity incidents are increasing
in frequency and evolving in nature and include, but are not limited to, installation of malicious software, unauthorized access to data
and other electronic security breaches that could lead to disruptions in systems, unauthorized release of confidential or otherwise protected
information and the corruption of data. Given the unpredictability of the timing, nature and scope of information technology disruptions,
there can be no assurance that the procedures and controls we employ will be sufficient to prevent security breaches from occurring and
we could be subject to manipulation or improper use of our systems and networks or financial losses from remedial actions, any of which
could have a material adverse effect on our business, financial condition, results of operations and prospects.

Security or privacy breaches
in our electronic transactions or data may expose us to additional liability or result in a loss of customers, either of which events
could harm our business.

Use of our solutions involve the
storage, transmission