South African Tech Mogul Zak Calisto Takes 180 Million Hit On Karooooo Stake
- 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 Karooooos stock price tumbled, wiping out earlier gains. The drop comes despite the companys 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 stakeequivalent 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 unrestFounded 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 millionthe market has responded negatively.
Over the past 24 days, Karooooos Nasdaq-listed shares have dropped 19.03 percent, falling from 49.4 on Feb. 18 to 40. This decline has pushed the companys 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.