Table of Contents
Key Points
- Karooooo shares fall nearly 10% in 10 days, wiping $87.9 million off CEO Zak Calisto’s stake amid U.S. tariff concerns.
- Karooooo’s stock drops to $40.14 on Nasdaq, cutting market cap to $1.24 billion as investor concerns mount over emerging market risks.
- Despite 15% revenue growth, Karooooo faces selling pressure, with Calisto’s stake down to $803.96 million from $891.88 million in late March.
South African tech entrepreneur Zak Calisto is feeling the pressure as shares of his Nasdaq-listed company, Karooooo Ltd., continue to fall. The drop comes in the wake of sweeping U.S. tariffs, which have rattled investors and pushed the mobility Software-as-a-Service (SaaS) company’s stock lower.
In just 10 days, Calisto’s holdings have dropped by $87.9 million, reflecting growing unease in the market. This comes on the heels of an even steeper loss in mid-March, when the value of his stake tumbled by $180 million, bringing the market value of his down to $809.2 million. Calisto holds a controlling 64.81 percent stake in Karooooo, equal to 20,028,811 shares.
Karooooo’s stock slump deepens
Karooooo started out in 2001 as a South African vehicle recovery business. Over the years, it has transformed into a global mobility software firm. Its flagship division, Cartrack, now provides real-time analytics for fleet management, vehicle tracking, and insurance telematics—serving more than 2.2 million users across 25 countries.
But despite steady revenue growth, the company is facing a tougher crowd on Wall Street. For the nine months ending Nov. 30, 2024, Karooooo reported a 15 percent increase in revenue to R3.35 billion ($182 million), up from R3.11 billion ($169 million) a year earlier. Still, a recent goodwill impairment tied to its Mozambique operations, along with investor nerves over U.S. tariffs, has taken the shine off those numbers and rattled confidence.
In the past 10 days alone, Karooooo’s shares on the Nasdaq have dropped nearly 10 percent—from $44.53 on March 25 to $40.14—dragging its market value down to $1.24 billion. The drop has hit major shareholders, including founder and CEO Zak Calisto, whose stake has fallen from $891.88 million to $803.96 million in just over a week.
Investor confidence wanes
Karooooo Ltd.’s stock has dropped 11.1 percewnt year-to-date, reflecting broader investor caution toward mobility technology firms operating in emerging markets. A $100,000 investment at the start of the year would now be worth $88,900.
The company remains a major player in global fleet management and telematics, but the stock decline underscores concerns about economic headwinds and its growth outlook. CEO Zak Calisto’s wealth, largely tied to Karooooo’s share price, remains under pressure as market sentiment weakens.
