Home / Business and Economy / Karooooo Drives 20% ARR Growth
Karooooo Drives 20% ARR Growth
28 Nov
Summary
- Karooooo's ARR grew 20% to ZAR 4,806 million in Q2 FY '26.
- Platform supports 2.5 million subscribers across over 125,000 businesses.
- Customer retention rate remains strong at 95%.
Karooooo reported a significant 20% increase in its Q2 FY '26 Annual Recurring Revenue (ARR), reaching ZAR 4,806 million. The company's Software-as-a-Service platform, designed for connected vehicles and mobile assets, continues to demonstrate robust growth, serving over 2.5 million subscribers across more than 125,000 businesses in South Africa, Southeast Asia, and Europe. This expansion is driven by digital transformation and a focus on operational efficiency.
The platform's success is underpinned by a strong financial model featuring high-margin subscription revenue and exceptional customer retention, which stands at 95%. Karooooo leverages proprietary data assets, generating over 275 billion data points monthly to deliver valuable insights. The company's LTV to CAC ratio remains above 9x, a testament to its efficient business model.
Karooooo operates two key segments: Cartrack, its SaaS operations management platform, and Karooooo Logistics. Cartrack is the primary growth engine, with Q2 FY '26 showing accelerated subscription revenue in South Africa and Europe, alongside solid growth in Southeast Asia. These results reflect strategic investments in sales capacity expansion.
