Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 4

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 4
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 as a result, our revenue and growth could
be materially and adversely affected. Customers may choose to cancel or not renew their subscriptions or to downsize their subscriptions
for a number of reasons, including the belief that our solutions are not required for their personal or business needs or are otherwise
not as cost-effective as initially anticipated, a desire to reduce discretionary spending, a belief that our competitors’ solutions
provide better value, an economic downturn in their industries or the markets in which they operate, and customers may not renew their
subscriptions when they refresh their fleet with new vehicles. Large enterprise customers may also decrease the number of vehicles covered
by subscription contracts if their fleet sizes decrease. Additionally, our customers may cancel or not renew for reasons entirely out
of our control, such as the dissolution of their business or personal financial distress.

Part of our growth strategy is
to retain customers and drive margin expansion by providing enhanced and additional software solutions to existing customers while keeping
our costs low. Our ability to provide an advanced software platform to existing customers in a cost-effective manner depends, in significant
part, on our ability to anticipate industry evolution, practices and standards and to continue to enhance our platform and existing software
solutions, such as integration with fuel cards, GPS navigation devices, as well as various third-party software and products manufactured
by original equipment manufacturers (“ OEMs”), or partnership with vehicle insurance providers, or to introduce or acquire
new software features on a timely basis to keep pace with technological developments both within our industry and in related industries,
including integration with developing technologies and platforms such as artificial intelligence (“ AI”), machine learning
and big data analytics. However, we may prove unsuccessful either in developing new software features or in expanding the third-party
software and products with which our SaaS platform integrates, such third-party software and products may become incompatible or replace
our solutions, and such efforts may not be cost-effective - See “ Our platform integrates with third-party technologies and
if our platform becomes incompatible with these technologies, our platform would lose functionality and flexibility and our customer acquisition
and retention could be adversely affected.” In addition, the success of any enhancement or new feature depends on several factors,
including the timely completion, introduction and market acceptance of the enhancement or feature. Any new software applications or features
we develop or acquire might not be introduced in a timely or cost-effective manner and might not achieve the broad market acceptance necessary
to generate significant revenue. If any of our competitors implements new technologies before we are able to implement them, better anticip