Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 27

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 27
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 the solutions we can offer, which may harm our business and adversely affect our financial condition.

The transmission of data over
the Internet and cellular networks is a critical component of our SaaS business model. As Internet commerce continues to evolve, increased
regulation by federal, state or foreign agencies becomes more likely, particularly in the areas of data privacy, and data security. We
are subject to this complex and evolving patchwork of data privacy and data security laws and regulations in the jurisdictions in which
we operate. These laws and regulations impose numerous obligations on our business, including those relating to the collection, use, disclosure,
transfer, destruction and security of personal information. The requirements under these laws are often complex, vary by jurisdiction
and can be subject to unclear or conflicting interpretations. These laws may also carry significant penalties for non-compliance, including
substantial fines and private litigation. Despite our efforts to comply with these obligations, our products, services and operations
may not fully comply with all applicable laws and regulations at all times. In addition, taxation of services provided over the Internet
or other charges imposed by government agencies or by private organizations for accessing the Internet may be imposed. Any regulation
imposing greater fees for Internet use or restricting information exchange over the Internet could result in a decline in the profitability
and viability of Internet-based services, which could harm our business.

Our solutions enable us to collect,
manage and store a wide range of data related to fleet management, vehicle location and tracking and other telematics services such as
fuel usage, engine temperature, speed and mileage and, in the case of our field service application, includes customer information, job
data, schedule and invoice information. A valuable component of our solutions is our ability to analyze this data and present the user
with actionable business intelligence, including AI-powered decision making tools. We expect AI to play an increasingly important role
in our future product and service offerings. As with many developing technologies, AI presents risks and challenges that could affect
its further development, adoption, and use, and therefore our business. The use of AI technologies could lead to the unauthorized disclosure
of sensitive, proprietary, or confidential information and could lead to new potential cyberattack methods or increase the frequency or
intensity of such attacks. We obtain our data from a variety of sources, including our customers and third-party sources or service providers.
We cannot assure you that the data we require for our proprietary data sets will be available from these sources in the future or that
the cost of such