Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 22

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 22
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 our managerial, administrative, operational, financial and other resources. We intend to further expand our overall business,
customer base, headcount and operations. Our global organization and workforce require substantial management effort to maintain. We will
be required to continue to improve our operational and financial controls and reporting procedures and we may not be able to do so effectively.
As such, we may be unable to manage our expenses effectively in the future, which may negatively impact our gross profit or operating
expenses in any particular quarter.

We may not effectively execute on our expansion strategy,
which may adversely affect our ability to maintain our historical growth and earnings trends.

Cartrack has grown rapidly over
the last several years. Companies that grow rapidly can experience significant difficulties as a result. Our primary expansion strategy
focuses on organic growth, including increased regional market penetration; however, we may not be able to successfully execute on these
aspects of our expansion strategy, which may cause our future growth rate to decline below our recent historical levels, or may prevent
us from growing at all.

While we operate in numerous jurisdictions
and our software platform and local company websites are designed for ease of localizations, we may find it difficult to localize our
company website and software platform into certain foreign languages, and we may be required to invest significant resources in order
to do so in markets in which we do not yet operate. Furthermore, in addition to the expansion of our business into new geographical markets,
we seek to develop a range of mobility and monitoring solutions in select markets. We may not succeed in these efforts or achieve our
customer acquisition, customer retention or other goals. In some international markets, customer preferences and buying behaviors may
be different, and we may use business or pricing models that are different from our traditional subscription model to provide our mobility
data analytics solutions to customers in those markets, or we may be unsuccessful in implementing the appropriate business model. Our
revenue from new markets may not exceed the costs of establishing, marketing, and maintaining our offerings.

In addition, conducting expanded international operations
would subject us to new risks. These risks include:

  localization of our SaaS platform and the specific features                                                                       

  lack of experience in other geographic markets;  

  strong local competitors;  

  the cost and burden of complying with, lack of familiarity                                                                                 

  difficulties in managing and staffing international operations;  

  fluctuations in currency exchange rates or restrictions on  
  foreign currency;                                           
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  potentially adverse tax