Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 13

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 13
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 or acquire new and compelling solutions that capitalize upon new technologies in response to OEM and consumer preferences,
this could have a material adverse effect on our results of operations.

An increase in factory-fitted
or embedded telematics technology in new vehicles in our markets could result in reduced demand for our SaaS platform, which could have
a material adverse effect on our revenue.

Certain OEMs have begun embedding
technology similar to our own technology in new vehicles prior to their initial sale, creating the potential for products and services
that may overlap with our SaaS platform. This may preclude us from increasing sales to customers purchasing such vehicles. The inability
to market and sell our solutions to new customers or partner with OEMs to embed our solutions into their devices prior to their initial
sale could have a material adverse effect on our ability to grow our subscriber base and increase revenue.

Our dependence on various
lead generation programs could adversely affect our operating results if we need to pay more for such programs or we are unable to attract
new customers at the same rate.

We use a number of lead generation
channels to promote our SaaS platform, along with inside sales and field sales teams. Significant increases in the costs of one or more
of our lead generation channels would increase our overall lead generation costs or cause us to choose less expensive and perhaps less
effective channels. For example, a portion of our potential customers locate our website through search engines and social media platforms,
representing one of the most efficient means for generating cost-effective customer leads. If search engine companies modify their search
algorithms in a manner that reduces the prominence of our listing, or if our competitors’ search engine optimization efforts are
more successful than ours, fewer potential customers may click through to our website or lead pages. In addition, the cost of purchased
listings has increased in the past and may continue to increase in the future. In regions where we are reliant on inside sales and field
sales teams, an increase in labor costs may increase our lead generation costs and cost of customer acquisition. As we add to or change
the mix of our lead generation strategies, we may need to expand into channels with significantly higher costs than our current channels,
which could have a material adverse effect on our cost of subscriber acquisition and results of operations. If we are unable to maintain
effective advertising programs, our ability to attract new customers could be materially and adversely affected and our advertising and
marketing expenses could increase substantially, further affecting our results of operations.

If we are unable to successfully
convert