Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 23

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 23
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 consequences, including the complexities                                                                       

  dependence on third parties, including commercial partners  

  increased financial accounting and reporting burdens and  
  complexities;                                             
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  political, social, and economic instability, terrorist attacks,                                                 

  reduced or varied protection for intellectual property rights  

Operating in international markets
also requires significant management attention and financial resources. The investment and additional resources required to establish
operations and manage growth in other countries may not produce desired levels of revenue or profitability.

Various other factors, such as
economic conditions and competition may impede or restrict the growth of our operations. The success of our strategy also depends on our
ability to manage our growth effectively, which in turn depends on a number of factors, including our ability to adapt our credit, operational,
technology and governance infrastructure to accommodate expanded operations. Even if we are successful in continuing our growth, such
growth may not offer the same levels of potential profitability and we may not be successful in controlling costs relative to revenue.
As such, we may not be able to achieve our long-term targets for expense management and profitability. Accordingly, our inability to maintain
growth or to effectively manage growth could have a material adverse effect on our business, financial condition and results of operations.

Investments into our SaaS platform
and technology infrastructure may not yield the desired results.

We have developed a scalable and
proprietary SaaS platform to facilitate and integrate our business operations, data gathering analysis and online marketing capabilities
and have invested significant capital and time into building and enhancing our SaaS platform and infrastructure. In order to remain competitive,
we expect to continue to make significant investments into our technology. However, there is no guarantee that the capital and resources
we have invested or will invest in the future will allow us to develop suitable SaaS platform enhancements or software applications or
maintain and expand our SaaS platform and technology infrastructure as intended, which could have a material adverse effect on our ability
to compete or require us to purchase expensive software solutions from third-party developers.

If our investments in our SaaS
platform and technology infrastructure do not yield the desired results, it could have a material adverse effect on our business, financial
condition, results of operations and prospects.

If we fail to maintain or enhance
our brand recognition or reputation, our business could be harmed.

We believe that maintaining, enhancing
and protecting our brand and our reputation are critical to our relationships with our customers and to our ability to attract new customers.
We also believe