Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 7

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 7
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 management software. As the technology used in each of these industries evolves, we will face
new integration and competition challenges. For example, as mobile handsets have evolved to include GPS tracking technology, they have
become competitors against our solutions. Additionally, ADAS technology, with embedded AI, may have features that are similar to or overlap
with our solutions. Furthermore, major gains in fuel efficiency and electric automobiles may lead to a relative decrease in the demonstrable
return on investment of our solutions as perceived by our customers. If we are unable to adapt to rapid technological change, it could
have a material adverse effect on our results of operations and our ability to remain competitive.

Our platform integrates
with third-party technologies and if our platform becomes incompatible with these technologies, our platform would lose functionality
and flexibility and our customer acquisition and retention could be adversely affected.

Our platform integrates with
third-party software and devices to allow our platform to perform key functions. For example, we offer integration with work-flow software
products, such as business intelligence software, enterprise resource planning systems, routing and scheduling and freight management
logistics billing systems, among others. Although to date this integration has been accomplished using application programming interfaces
(“ API”), other open software interfaces and simple physical linkages, we cannot guarantee that this ease of integration will
continue or that we will be able to integrate with other products as easily in future or without additional cost. Newer vehicles and devices
may be developed, which include different ports and do not allow for our platform to be integrated through simple physical linkages. Further,
the risk exists that undetected errors, viruses or bugs may be present in third-party software that our customers use in conjunction with
our platform.

Changes to third-party software
that our customers use in conjunction with our platform could also render our platform inoperable. Customers may conclude that our software
is the cause of these errors, bugs or viruses and terminate their subscriptions. The inability to easily integrate with, or any defects
in, third-party software could result in increased costs, or in delays in software releases or updates to our platform until such issues
have been resolved, which could have a material adverse effect on our business, financial condition, results of operations, cash flows
and future prospects and could damage our reputation.

Our software solutions
rely on cellular (GSM/LTE) and GNSS (including GPS, Glonass, Galileo) or regionally equivalent networks (including QZSS) and any disruption,