Motley Fool Money: Interview with Karooooo CEO Zak Calisto
August 17, 2025

Episode Overview

This episode features an in-depth interview with Zak Calisto, founder and CEO of Karooooo (KARO), conducted by Motley Fool co-founder Tom Gardner and analyst Emily Flippen. The discussion centers on Karooooo’s evolution from tracking stolen vehicles in South Africa to becoming a global platform for telematics, fleet management, connected vehicles, and enterprise solutions. Calisto shares candid insights on company culture, financial discipline, AI, autonomy, and leadership.

Key Discussion Points & Insights

1. Origin Story of Karooooo

[01:40]

• Personal Motivation: Zak Calisto entered the business after his car was stolen in 1994, initially becoming an agent for a South African vehicle tracking firm.
• Early Expansion:
  • Sold 80% of the company's sales; expanded into neighboring countries and explored Brazil.
  • Developed his own technology after realizing existing tech wasn’t economically viable abroad.
• Building Karooooo:
  • Founded the company in 2004, focusing initially on simple "track and trace" products.
  • Pivoted in 2007 to fleet management and eventually a comprehensive platform serving varied industries.
• Quote:
  • "I had the advantage of knowing what not to do." (Zak Calisto, [01:40])
  • "If we look back... what we had and what we got now is really we're in a very different space." (Zak Calisto, [03:22])

2. Business Model Evolution & Revenue Breakdown

[04:31]

• Diverse Segments:

  • Historically focused on consumers; now two-thirds commercial, one-third consumer.
  • South Africa represents 70% of group subscription revenue; rest from Europe & Asia (mostly enterprise).

• Enterprise Solutions:

  • Deep integration with client systems via APIs, business intelligence, live alerts, and industry-specific solutions.
  • Services range across logistics, ambulances, cold storage, and hazardous material transport.

• Growth Outlook:

  • Platform’s ongoing evolution, driven by customer needs, positions Karooooo for continued innovation.

• Quote:

  • "The reality is we continue to develop this platform because as we get closer to our customers... it's just endless challenges that the customers face..." (Zak Calisto, [05:40])

3. Financial Health & Discipline: Rule of 60

[07:06]

• Strong Financials:

  • Karooooo boasts a high financial score on Motley Fool's metrics and an impressive ~35% “ROUNTA” (Return on Unlevered Net Tangible Assets).
  • Rule of 60: Growth rate + EBITDA margin ≈ 60%, signaling strong profitability and cash flow.

• Disciplined Growth:

  • Calisto prioritizes sustainable, profitable growth over rapid, risky expansion, citing the importance of culture and retention.
  • Capex-intensive approach; cautious about excessive debt or dilutive fundraising.

• Quotes:

  • "We have got a very profitable business generating really good and operating cash flows. And our growth rates are what I would consider very healthy." (Zak Calisto, [08:07])
  • "I'd love to be growing at 300% per annum... It's all about execution and keeping your culture so that it's sustainable..." (Zak Calisto, [13:20])
  • "I'm not against raising cash... but we'll do that when we find our free cash flow is not sufficient..." (Zak Calisto, [13:55])

4. Leadership & Team Building Philosophy

[10:23]

• Leadership Style:
  • Zak is “a man of detail” but distinguishes between meaningful details and distractions.
  • Views team-building and culture as core to long-term business health.
• Talent and Culture:
  • Emphasizes fit and skills, vertical integration, and full value chain control, especially in customer service.
• Quote:
  • "At the end of the day, we're in the business of building teams. If you can't build the teams, you're not going to have a good business..." (Zak Calisto, [11:38])
  • "Great teams, great product, and then pay attention to the way you spend money." (Zak Calisto, [12:08])

5. AI and New Technologies

[15:12]

• AI in Practice:
  • Uses machine learning for predictive analytics—risk mitigation, fraud prevention, and optimizing costs.
  • Example: Predicting potential loan defaults for banks and real-time risk scoring in fleet operations.
• Realism on AI:
  • Distinguishes Karooooo’s tangible, mathematical applications from the broader hype.
• Quote:
  • "In our space, AI is really about machine learning... do predictive analysis... mitigate risk and prevent costs for companies and optimize things as well." (Zak Calisto, [15:35])

6. The Impact of Autonomous Vehicles

[17:03]

• Autonomy Outlook:
  • Skeptical about immediate transformative impact globally—timelines and needs will vary by region.
  • Management systems remain relevant; autonomy replaces the driver, not the entire organizational need for fleet intelligence.
• Agile Approach:
  • Karooooo remains flexible to adapt as the landscape changes.
• Quote:
  • "Autonomous vehicle only replaces the driver. It doesn't replace the chores, the jobs... I believe it really just is a replacement of the driver." (Zak Calisto, [17:54])
  • "There's a lot that's going to happen in the next 20 years and... we will work our way through all the different things that could happen." (Zak Calisto, [19:08])

7. The Story Behind the Karooooo Name

[00:05] & [19:16]

• The company was named after the Karoo region in South Africa, a semi-arid landscape.
• Calisto wanted Karoo.com, but the domain owner asked for $10M. He opted for Karooooo.com (with 5 O’s) and now owns up to 9 O’s.
• Lighthearted moment:
  • "You keep the name, I'll keep the money... We own all those Karoo.com." (Zak Calisto, [00:16])
  • "It might have been Arizona with five A’s at the end dot com." (Tom Gardner, [19:30])

Notable Quotes & Memorable Moments

• "If we look back to 20 years ago, what we had and what we got now is really we're in a very different space."
  — Zak Calisto ([03:22])

• "99% of the stuff you come across probably doesn't actually matter to the success of the business. The hard part is finding the little bit that does."
  — Emily Flippen ([12:15])

• On autonomy:
  "Autonomous vehicle only replaces the driver. It doesn't replace the chores, the jobs..."
  — Zak Calisto ([17:54])

• On naming the company:
  "You keep the name, I'll keep the money... I'll just do it from three till nine O's. We own all those Karoo.com."
  — Zak Calisto ([00:16])

Timestamps for Key Segments

• [01:40] — Zak Calisto’s personal and business journey (founding story)
• [04:31] — Shift from consumer focus to enterprise solutions and revenue breakdown
• [07:06] — Financial metrics, return on capital, and the Rule of 60
• [10:23] — Leadership philosophy and building teams
• [13:17] — Capital allocation and disciplined growth outlook
• [15:12] — AI applications and data-driven innovation
• [17:03] — Thoughts on autonomy and the future of fleet management
• [19:16] — The Karoo (and Karooooo) name origin story

Tone and Language

The discussion is candid, pragmatic, and at times humorous. Zak Calisto speaks with modesty, realism, and a strong focus on disciplined execution—clearly proud of his team and company culture, and aware of the challenges and opportunities ahead in a rapidly changing industry.

This summary captures the episode’s major points, quotes, and moments, providing a clear outline of what makes Karooooo and its founder notable in the global tech and fleet management landscape.