Karooooo Ramps Up Expansion into Europe and Asia as Cartrack Subscriber Growth Soars

Cartrack-owner Karooooo is pushing ahead with its international expansion, reporting strong gains in Europe and Asia and plans to grow further in Southeast Asia, despite challenges in some African markets.

In its FY2025 results, the Singapore-based, South African-founded, NASDAQ-listed company said it saw strong subscriber growth and earnings momentum, driven by platform innovation and aggressive market execution.

“FY 2025 was a year of strong execution, impactful innovation and significant progress,” said Zak Calisto, Group CEO of Karooooo.

The company added 330,704 new Cartrack subscribers, bringing the total to over 2.3 million globally. Overall subscription revenue rose 15% to R4 billion, with operating profit up 26% to R1.3 billion. Earnings per share jumped 25% to R29.81.

Europe and Asia See Strong Momentum

Karooooo’s European expansion is showing results, with Cartrack subscribers up 20% to just over 200,000 and subscription revenue increasing 15%. The company says it is optimistic about continued organic growth in South Africa and accelerated subscriber growth in Europe.

The company is also betting big on Southeast Asia. Subscriber numbers in Asia Pacific and the Middle East grew 19% to 273,946, with subscription revenue up 21%.

“Southeast Asia remains a key medium-to-long-term growth opportunity,” said Calisto. “Our investments in Sales and Marketing in the region, including a planned 70% increase in sales headcount, should yield results by FY2026.”

Karooooo is working with original equipment manufacturers (OEMs) to integrate vehicle data into its platform, improving accessibility and user experience through APIs.

Challenges in Africa: Mozambique a Concern

Despite its strong global showing, Karooooo faced headwinds in Mozambique, where political instability and riots led to the temporary suspension of subscription billing and an impairment charge of R43.6 million.

While Cartrack continues to grow across Africa, the uncertain political and economic climate in Mozambique has made operations there more difficult in the near to medium term.

Logistics Division Also Gains Ground

Karooooo’s Logistics segment also saw strong performance, with DaaS revenue up 33% to R420 million, contributing to the group’s strong overall financial results.

With its tech-driven, subscription-based model, Karooooo is setting itself up as a leading player in global telematics and logistics technology.

Karooooo is proving that a South African-born tech company can thrive on the global stage. With solid financials, strategic partnerships, and aggressive expansion plans in Asia and Europe, the group is positioning itself for long-term international growth, even as it navigates regional challenges.

{Source: BusinessTech}

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