Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 74

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 4
Chunk 74
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. We operate in a market characterized by significant barriers to entry, which contribute to our competitive advantage. These
include the fragmented nature of the global market, substantial upfront capital requirements to develop and deploy infrastructure at scale,
and the need for sustained investment in research and development to remain at the forefront of technological innovation. Additionally,
the capital required to fund device and installation costs further elevates the barrier for new entrants. Our strong execution culture
and customer-centric approach further differentiate us in the marketplace. The industry has increasingly transitioned from upfront hardware
and installation payments to recurring SaaS subscription models, where service providers retain ownership of the deployed telemetry devices.
The rising demand for solutions with no upfront costs presents a challenge for smaller vendors and new entrants lacking the scale and
financial resources to compete effectively. Further, it is difficult for new entrants to ensure a high level of service without scale
of technical personnel capable of servicing customers whose operations span multiple cities and require IoT device installations across
various assets.

We intend to pursue the following growth
strategies:

Expand our customer base. Our global market penetration remains relatively low to moderate, which we believe presents a significant opportunity to expand
our customer base across international markets. We anticipate that future demand growth will be driven by the continued proliferation
of mobile assets and a diverse range of emerging smart mobility use cases. These include ongoing customer needs to enhance efficiency,
reduce costs, improve safety, mitigate risk, compliance and governance. We expect this demand to outpace overall global fleet growth as
broader adoption of mobility solutions accelerates in response to demonstrated value. Additionally, we foresee increased demand from governments,
businesses, and consumers, particularly in regions experiencing increased regulations. We serve a wide spectrum of customers across multiple
industries and remain focused on expanding our subscriber base.

Increase subscription sales
to existing customers. Our continued focus on R& D and innovation enables us to develop new features and capabilities tailored
to the growing and diverse demands of our global customer base. With more than 2.3 million subscribers, we see significant potential to
expand our subscription revenue by driving increased subscriber adoption and engagement with additional products like video and Cartrack-tag
and newer features and capabilities of our platform. Our existing customer base represents a significant opportunity for further subscription
sales expansion.

Expand our geographic presence
worldwide. While South Africa remains a key market, we anticipate stronger subscriber growth in the Asia-Pacific and Middle East
regions. This expectation is based on several factors, including larger and growing populations, higher