Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 52

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 52
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Changes in practices of insurance
companies in the markets in which we provide our solutions could have an adverse effect on demand for products and services.

We depend in part on the practices
of insurance companies in some of our markets to support demand for our SaaS platform. For example, in South Africa, which is currently
our largest market based on new subscriber additions, insurance companies either mandate the installation of tracking devices as a prerequisite
for providing insurance coverage to owners of certain vehicles, or provide insurance premium discounts to encourage vehicle owners to
subscribe to vehicle tracking and mobile asset recovery solutions such as ours. We benefit from this continued practice in the South African
and certain other markets of:

  accepting mobile asset location technologies such as ours  

  providing premium discounts for using location and recovery  

  mandating the use of our products and services, or similar  

If any of these policies or practices
change, revenues from the sale of our solutions could decline, which could have a material adverse effect on our business, results of
operations and financial condition.

Risks Relating to Investments in
Singapore Companies

We are incorporated in Singapore,
and our shareholders may have more difficulty in protecting their interests than they would as shareholders of a corporation incorporated
in the United States.

Our corporate affairs are governed
by our constitution and by the laws governing companies incorporated in Singapore. The rights of our shareholders and the responsibilities
of the members of our board of directors under Singapore law may be different from those applicable to a corporation incorporated in the
United States. Therefore, our public shareholders may have more difficulty in protecting their interests in connection with actions taken
by us, our management, members of our board of directors or our controlling shareholder than they would as shareholders of a corporation
incorporated in the United States. For example, controlling shareholders in corporations incorporated in Delaware are subject to fiduciary
duties while controlling shareholders in Singapore companies are not subject to such duties.

In addition, only persons who
are registered as shareholders in our register of members are recognized under Singapore law as our shareholders. Only registered shareholders
have legal standing to institute shareholder actions against us or otherwise seek to enforce their rights as shareholders. Investors in
our ordinary shares who are not specifically registered as shareholders in our register of members (for example, where such shareholders
hold ordinary shares indirectly through the depository trust company “ DTC”) are required to be registered as shareholders
in our register of members in order to institute or enforce any legal proceedings or claims against us, our directors or