Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 26

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 26
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 to be compatible with ours, or we have difficulty retaining the customers
of any acquired business due to changes in management or otherwise. Acquisitions may also disrupt our business, divert our resources,
and require significant management attention that would otherwise be available for the development of our business. Moreover, the anticipated
benefits of any acquisition, investment, or business relationship may not be realized or we may be exposed to unknown liabilities, including
litigation against the companies we may acquire. For one or more of those transactions, we may:

  issue additional equity securities that would dilute our  

  use cash that we may need in the future to operate our business;  
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  lose key employees of any acquired business;  

  face challenges in successfully integrating, operating and                                                               

  incur debt on terms unfavorable to us or that we are unable            
  to repay or that may place burdensome restrictions on our operations;  
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  incur large charges or substantial liabilities; or  

  become subject to adverse tax consequences, or substantial                            

Any of these risks could harm our business
and results of operations.

We have entered, and expect to
continue to enter, into collaboration agreements or partnerships and these activities involve risks and uncertainties.

We have entered, and expect to
continue to enter, into collaboration agreements with local partners to the extent required pursuant to local laws and regulations in
order to penetrate certain geographic regions to effectively grow our business. Entering into collaborations or partnerships involves
risks and uncertainties, including the risk that a given partner could fail to satisfy its obligations, which may result in certain liabilities
to us for guarantees and other commitments. Further, since we may not exercise control over our current or future partners, we may not
be able to require our partners to take the actions that we believe are necessary to implement our business strategy. Additionally, differences
in views among partners may result in delayed decision-making or failure to agree on major issues. If any of these difficulties cause
any of our partners to deviate from our business strategy, or if this leads any of our collaborations or partnerships to fail to attract
the intended customer base, it could have a material adverse effect on our results of operations.

Risks Relating to Our Intellectual
Property, Data Privacy and Cybersecurity

Evolving regulation and
changes in applicable laws relating to the Internet and data privacy may increase our expenditure related to compliance efforts or otherwise
limit