Table of Contents
Key Points
- Zak Calisto's stake in Karooooo loses $180 million as the company's stock drops 19% in 24 days, erasing earlier gains despite revenue growth.
- Mozambique unrest triggers goodwill impairment, forcing Karooooo to suspend billing and remove vehicles, impacting investor confidence.
- Karooooo shares down 11.41% year-to-date, reflecting market concerns over operational risks despite its strong position in mobility technology.
Zak Calisto, the South African tech mogul behind Karooooo Limited, has seen the value of his stake in the mobility technology company take a sharp hit. In just 26 days, his holdings have lost $180 million as Karooooo’s stock price tumbled, wiping out earlier gains. The drop comes despite the company’s continued revenue growth and global expansion.
Calisto, the founder and CEO of Karooooo, a Singapore-based Software-as-a-Service (SaaS) company specializing in mobility solutions, holds a controlling 64.81 percent stake—equivalent to 20,028,811 shares. Earlier this year, his stake was valued at $945.36 million, but it has since dropped to $800 million. The $809.2 million decline comes after a brief surge between Jan. 27 and Feb. 6, when his holdings gained $71 million before the downturn wiped out those gains.
Karooooo shares drop 19 percent amid Mozambique unrest
Founded by Calisto in 2001 as a South African vehicle recovery service, Karooooo has grown into a global mobility SaaS provider with over 2.2 million users across 25 countries. Its Cartrack unit provides real-time analytics to help companies manage fleets and operations. However, recent challenges, including a goodwill impairment tied to its operations in Mozambique, have rattled investors.
The impairment, expected to be recorded in the fiscal year ending February 2025, follows significant unrest in Mozambique. The instability forced Karooooo to remove thousands of vehicles from service and suspend billing in the region for two months. While the company still reported a 15 percent revenue increase for the nine months ending Nov. 30, 2024—bringing in R3.35 billion ($182 million), up from R3.11 billion ($169 million)—the market has responded negatively.
Over the past 24 days, Karooooo’s Nasdaq-listed shares have dropped 19.03 percent, falling from $49.4 on Feb. 18 to $40. This decline has pushed the company’s market capitalization down to $1.24 billion, dealing a significant blow to major shareholders like Calisto. His stake, valued at $989.42 million in mid-February, now stands at $809.2 million.
Karooooo faces stock decline this year
Despite the setback, Karooooo remains a major player in mobility technology, specializing in vehicle tracking, fleet management, and insurance telematics. But the latest stock decline signals investor concerns about operational risks in volatile markets. So far this year, Karooooo shares have dropped 11.41 percent, reflecting broader struggles in the sector. A $100,000 investment in Karooooo shares at the start of the year would now be worth $88,590, marking an $11,410 decline.
