Karooooo expects to double its business in South Africa in the coming four years.
While the Cartrack parent company has bet its current and future growth on the Southeast Asia region, South Africa continues to be the group’s bread and butter, accounting for three-quarters of revenue and customers.
As such, the company is still focused on winning even more of a market in which it competes with Tracker SA, Mix Telematics (now PowerFleet) and Altron’s Netstar.
In an interview with Business Day, group founder and CEO Zak Calisto said: “What we would like to do is to at least double the size of our business in South Africa over the next four years. We currently have about 1.9-million vehicles in South Africa. Whether it’s vehicles or subscription revenue, I would like to see that double.”
Karooooo lifted subscription revenue by 20% to R1.24bn in the third quarter, with the group delivering record net subscriber additions as it expanded its distribution footprint in existing markets.
The group said on Wednesday that adjusted EPS for the three months ended November increased 11% to R8.54, while operating profit rose 14% to R369m.
Cartrack subscribers increased 16% to 2.568-million, with a record net Cartrack subscriber addition of 111,478, it said.
Cartrack’s operating profit increased 14%, and Karooooo Logistics’ operating profit increased 7%.
South African customers for Cartrack increased 16% to 1,937,005 in the period. Subscription revenue grew 21%, with average revenue per user up 7% to R162 at the end of November 2025.
The third-quarter “performance reflects our consistent and disciplined track record of growing our business at scale. We continued to accelerate our subscription revenue while experiencing record net subscriber additions,” said Calisto.
He said the group saw increased adoption of its Video and Cartrack Tag solutions, which were the main drivers of the acceleration.
“While accelerated growth creates timing differences between upfront growth-related expenses, such as sales and marketing expenses, and their realisation of future revenue, we believe accelerating growth — when executed efficiently and supported by strong unit economics and our healthy balance sheet — is the appropriate strategy to drive long-term shareholder value.”
He expects the ongoing investment in distribution capacity to create durable advantages that extend beyond the current financial year.
The group plans to cement its leadership position in South Africa by selling two new telemetry devices, Video and Cartrack Tag, to its existing customers.
“We are confident our investments in sales capacity this year will position us well to drive subscriber growth moving forward,” Calisto said.
With Cartrack’s revenue making up the majority of group revenue, Karooooo has revised its 2026 guidance and expects Cartrack’s subscription revenue to be between R4.785bn and R4.9bn, which implies subscription revenue growth of between 18% and 21%. Its previous outlook had been for subscription revenue of R4.7bn to R4.9bn.
It expects Cartrack’s operating profit margin to be between 27% and 30%, compared with previous guidance of 26%-31%.
In 2025, the group opened a new business in Vietnam as it continued to advance its ambitions in Asia. The group’s long-held view is that the Southeast Asia region can be its main driver of growth.
Update: January 21 2026
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