Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 34

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 34
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 of our network
that are located in our external data centers, we do not control the operation of these facilities. Problems faced by our third-party
data centers with the telecommunications network providers with whom we or they contract, or with the systems by which our telecommunications
providers allocate capacity among their customers, including us, could adversely affect the experience of our customers. Our third-party
data center operators could decide to close their facilities without adequate notice. In addition, any financial difficulties, such as
bankruptcy, faced by our third-party data center operators or any of the service providers with whom we or they contract may have negative
effects on our business, the nature and extent of which are difficult to predict. Our disaster recovery systems are located at third-party
hosting facilities. While we are increasing our back-up capability, our systems have not been tested under actual disaster conditions
and may not have sufficient capacity to recover all data and services in the event of an outage. In the event of a disaster in which our
disaster recovery systems are irreparably damaged or destroyed, we could experience interruptions in access to our solutions. Any changes
in third-party service levels at our data centers or any errors, defects, disruptions, or other performance problems with our solutions
could harm our reputation and may damage our data. Interruptions in our services might reduce our revenue, cause us to issue credits or
refunds to customers, subject us to potential liability, or harm our customer retention rate. Compliance with the various data protection
laws across nations is challenging due to the complex and sometimes contradictory nature of the different regulatory regimes. Because
data protection regulations are not uniform among the various nations in which we operate, our ability to transmit consumer information
across borders is limited by our ability to comply with conditions and restrictions that vary from country to country. In countries with
particularly strict data protection laws, we might not be able to transmit data out of the country at all and may be required to host
individual servers in each such country where we collect data.

We have experienced, and may
experience in the future, disruptions, outages, and other performance problems due to a variety of factors, including infrastructure changes,
introductions of new functionality, human or software errors, capacity constraints due to an overwhelming number of users accessing our
solutions and platform capabilities simultaneously, denial of service attacks, or other security-related incidents. It may become increasingly
difficult to maintain and improve our performance, especially during peak usage times and as our solutions and