Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 11

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 11
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 intensify, which could cause our revenues to decline and have a material adverse effect on our results of operations.

For example, mobile service providers
and global software platforms, such as Google, provide limited services at lower prices or at no charge, such as basic GPS based mapping,
tracking and turn-by-turn navigation that could be expanded or further developed to more directly compete with our SaaS fleet management
solutions. In addition, wireless carriers, such as Verizon, offer SaaS fleet management solutions that benefit from the carrier’s
scale and cost advantages, which we may be unable to match. Similarly, vehicle OEMs may provide factory embedded or after-market installed
devices and effectively compete against us by directly or indirectly partnering with other fleet management service providers. Furthermore,
companies such as Google, Amazon and others have substantially greater financial, technical and marketing resources, relationships with
large vendor partners, larger global presence, larger customer bases, longer operating histories, greater brand recognition and more established
relationships than we do and may decide to compete in the market for SaaS fleet management and telematics solutions.

Such competition could result
in reduced operating margins, increased sales and marketing expenses and the loss of market share, any of which could have a material
adverse effect on our results of operations.

Industry consolidation may give our competitors advantages
over us, which could result in a loss of customers and/or a reduction in revenue.

Some of our competitors have made
or may make acquisitions or enter into partnerships or other strategic relationships to offer more comprehensive services or achieve greater
economies of scale. In addition, new entrants not currently considered competitors may enter our market through acquisitions, partnerships
or strategic relationships. Potential entrants may have competitive advantages over us, such as greater name recognition, longer operating
histories, more varied services and larger marketing budgets, as well as greater financial, technical and other resources. Industry consolidation
may result in competitors with more compelling service offerings or greater pricing flexibility than we have or business practices that
make it more difficult for us to compete effectively, including on the basis of price, sales and marketing programs, technology or service
functionality. These pressures could result in a loss of subscribers and/or a reduction in revenue.

Failure of businesses to adopt SaaS fleet management
solutions could reduce the demand for our platform.

We derive, and expect to continue
to derive, substantial revenue from the sale of subscriptions to customers choosing our SaaS platform. Widespread acceptance and usage
of SaaS fleet management solutions is