Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 30

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 30
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 could be adversely affected if government regulations require us to significantly change our business
practices with respect to this type of information or if the insurance providers who use our marketplace violate applicable laws and regulations.

Changes in applicable laws and
regulations may materially increase our direct and indirect compliance and other expenses of doing business, having a material adverse
effect on our business, financial condition and results of operations. If there were to be changes to statutory or regulatory requirements,
we may be unable to comply fully with or maintain all required licenses and approvals. Regulatory authorities have relatively broad discretion
to grant, renew and revoke licenses and approvals. If we do not have all requisite licenses and approvals, or do not comply with applicable
statutory and regulatory requirements, the regulatory authorities could preclude or temporarily suspend us from carrying on some or all
of our activities or institute financial penalties on us, which could have a material adverse effect on our business, results of operations
and financial condition.

We cannot predict whether any
proposed legislation or regulatory changes will be adopted, or what impact, if any, such proposals or, if enacted, such laws could have
on our business, results of operations and financial condition. If we fail to comply with applicable laws and regulations, we may be subject
to investigations, criminal penalties or civil remedies, including fines, injunctions, loss of an operating license or approval, increased
scrutiny or oversight by regulatory authorities, the suspension of individual employees, limitations on engaging in a particular business
or redress to customers. The cost of compliance and the consequences of non-compliance could have a material adverse effect on our business,
results of operations and financial condition. In addition, a failure to comply with applicable laws and regulations could have a material
adverse effect on our business, results of operations and financial condition by exposing us to negative publicity and reputational damage
or by harming our customer or employee relationships.

In most jurisdictions, government
regulatory authorities have the power to interpret and amend applicable laws and regulations, and have discretion to grant, renew and
revoke the various licenses and approvals we need to conduct our activities. Such authorities may require us to incur substantial costs
in order to comply with such laws and regulations. Regulatory statutes are broad in scope and subject to differing interpretation. In
some areas of our businesses, we act on our own or the industry’s interpretations of applicable laws or regulations, which may differ
by jurisdiction. In the event those interpretations are different from the interpretations of regulatory authorities, we may be