Karooooo Limited, the South African parent company of vehicle-tracking giant Cartrack, has reported a significant jump in profits and customer numbers for the half year ended August 31, 2025, solidifying its position as one of Africa’s fastest-growing tech firms.

1. Karooooo, parent company of Cartrack, reported a 20% rise in revenue to $139 million for the half year ending August 2025.
2. Founder Zak Calisto’s stake in the $1.74 billion firm now makes him a dollar billionaire, even after a partial share sale.
3. Cartrack’s subscriber base grew 15% to 2.4 million, with subscription services accounting for 98% of total revenue.
4. The group plans further AI-driven expansion across Africa and other emerging markets to sustain long-term growth.

The company’s founder and CEO, Zak Calisto, now officially ranks among the continent’s newest dollar billionaires, thanks to his majority stake in the $1.74 billion company.

Karooooo’s revenue grew 20% to $139 million, while subscription revenue, which accounts for 98% of its income, rose 19% to $123 million. The group’s subscriber base expanded 15% to 2.4 million customers, reflecting strong demand across its African and international markets.

Profit for the six months climbed 17.2% to $27.6 million, driven by Karooooo’s continued expansion of Cartrack and its logistics subsidiary. Karooooo Logistics alone posted a 29% revenue jump to $14 million, signaling the company’s growing footprint beyond telematics into broader mobility solutions.

Operating profit rose 18% to $37.8 million, even as the group ramped up investments in infrastructure and headcount to support new market entries. Operating expenses reached $53 million, up 17%, while sales and marketing costs jumped 32% to $20.8 million as Cartrack deepened its customer acquisition drive across key African and Asian markets.

Despite rising costs, Calisto said the company remains “firmly positioned for growth,” emphasising that the business operates in “an expanding and largely underpenetrated market fueled by strong customer demand.”

“This demand is driven by a heightened focus on digitisation, the need to improve operational efficiency, reduce costs, and increase safety in physical operations,” he added.

“Our proven and profitable business model, underpinned by a strong balance sheet and healthy cash position, gives us multiple levers for expansion.”

Zak Calisto joins Africa’s billionaire club after $75 million share sale

In June 2025, Calisto sold 1.5 million ordinary shares in Karooooo for $75 million, trimming his direct ownership from 65% to 58%.

Despite the sale, his remaining stake, valued at about $1 billion, cements his position among Africa’s tech billionaires.

Looking ahead, Karooooo said it will continue investing in AI-driven platforms and digital mobility tools to sustain growth and profitability. (BUSINESS INSIDER AFRICA)