Karooooo shares drop, leading to $107-million loss for Zak Calisto

Key Points

• Zak Calisto’s Karooooo stake plummets, losing $107 million as shares drop 11.82% over the past three weeks. 
• Karooooo's revenue rose seven percent to R2.19 billion, with subscription revenue climbing 15 percent despite recent stock struggles.
• Karooooo shares have surged 66 percent on Nasdaq this year, with a $100,000 investment now valued at approximately $165,100.

South African tech tycoon Zak Calisto has experienced a substantial decrease in his wealth following a sharp drop in the market value of his shares in Karooooo Limited, a Singapore-based global mobility Software as a Service (SaaS) platform.

Calisto, who owns a 64.81-percent stake in Karooooo, has seen the market value of his holdings decline by $107.76 million, driving the total value of his holdings below $805 million.

This recent dip follows a previous gain of $144.34 million recorded between Sep. 4 and Sept. 18, during which his holdings surged from $810.90 million to $955.25 million.

Karooooo's mixed bag: revenue up, shares down

Karooooo, founded by Zak Calisto in 2001 as a South African vehicle recovery service, has evolved into a global mobility SaaS provider with over 2.1 million users across 23 countries. Its Cartrack unit offers real-time analytics to help companies manage fleets and operations.

The company posted a 7 percent revenue increase, reaching R2.19 billion ($124.2 million), driven by a 15 percent rise in subscription revenue to R1.95 billion ($110.62 million). However, despite strong growth in core services, Karooooo’s share price has dropped 11.8 percent in the past three weeks, from $45.50 to $40.12, lowering its market cap to below $1.3 billion.

This decline has also hit Calisto’s stake, which fell from $911.3 million on Oct. 14 to $803.6 million, a loss of $107.7 million. But Calisto remains one of Africa’s leading tech entrepreneurs, and Karooooo retains a prominent position in smart transportation management.

Resilient investment amidst market storms

Karooooo's shares have surged 66 percent on Nasdaq this year, delivering strong returns to investors. A $100,000 investment at the start of 2024 would now be worth about $165,100, yielding a $65,100 gain.

Despite recent volatility, CEO Zak Calisto’s focus on mobility innovation aims to drive long-term growth for the company and its shareholders.