Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 14

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 14
---
 customer sales leads into customers on a cost-effective basis, our revenue and results of operations would be adversely affected.

We generate a substantial amount
of our revenue from the sale of subscriptions to our SaaS platform. In order to grow, we must continue to efficiently and cost effectively
convert customer leads, many of whom have not previously used SaaS fleet management platforms, into customers.

We rely on our inside sales teams
and our field sales representatives to drive cost-effective conversion of customer leads into customers. To execute our growth plan, we
must continue to attract and retain highly qualified inside sales and field sales personnel. We may experience difficulty in hiring, training
and retaining highly skilled inside sales and field sales personnel. An inability to convert customer sales leads into customers on a
cost-effective basis could have a material adverse effect on our financial condition and results of operations. See “ - The
loss of one or more of our key management team members or personnel, or our failure to attract, train and retain other highly qualified
personnel, could harm our business,” below.

An actual or perceived
reduction in theft rates may adversely impact demand for certain of our applications, which could result in a loss of customers and a
decline in growth.

Demand for our vehicle tracking
and asset recovery solutions is influenced by prevailing or expected theft rates. Vehicle theft rates may decline as a result of various
factors, such as the availability of improved security systems, implementation of improved or more effective law enforcement measures
and improved economic or political conditions in markets that have high theft rates. If vehicle theft rates in our markets decline significantly,
or if vehicle owners or insurance companies believe that vehicle theft rates have declined or are expected to decline, demand for some
of our SaaS platform applications may decline, which could result in a loss of customers and a decline in growth.

We are subject to the risk of
defaults by our customers and business partners.

Entering into subscription agreements
with customers, particularly consumers and sole proprietors whose credit may not be as strong as that of our large enterprise customers,
exposes us to credit risk in the event of customer defaults, and we may not be paid all amounts due under our subscription agreements.
In deciding whether to enter into subscription agreements with prospective customers, we may rely on information furnished by or on behalf
of them. We may also rely on representations of those prospective customers as to the accuracy and completeness of that information. The
inaccuracy of such information or representations affects our ability to accurately evaluate the credit risk of a