You’ve probably heard the stories of tech founders raising millions from venture capital before they even make a profit. Yet somehow, many of those companies still collapse. Now imagine starting with just $10 in your pocket, no wealthy backers, and no Silicon Valley hype—only grit, hustle, and customers who actually believed in your product.
That’s the story of Zak Calisto, the man behind Karooooo, a global SaaS mobility company that briefly turned him into Africa’s newest tech billionaire in May 2025. His billionaire status didn’t last long, but the lesson is clear: in a world obsessed with funding rounds and valuations, Calisto shows that bootstrapping and profitability can still win.
Why This Problem Exists
In African tech, one truth dominates: funding flows to fintech. According to Partech’s 2024 report, nearly 60% of all venture capital in Africa went into fintech startups. That means sectors like mobility, agritech, and logistics often get sidelined—even when they solve urgent, everyday problems.
For entrepreneurs, this is frustrating. You could be solving car theft in South Africa, supply chain breakdowns in Kenya, or transport inefficiencies in Lagos, but if you’re not “fintech,” the big checks rarely come. Add to that the fact that most startups prioritize growth over profit, and you’ve got an ecosystem vulnerable to crashes when funding slows down.
Something has to change. And that’s where Calisto’s story hits different.
The Twist: How Zak Calisto Changed the Game
Here’s the twist: Calisto didn’t rely on VC money.
Back in 2001, he started Cartrack (later rebranded Karooooo) with just $10 in his bank account. His clever hack? Every time a customer signed up for a 24-month mobile contract, he pocketed about $200 upfront from the incentive. That cash went straight into funding his operations. No investors. No safety net. Just customers fueling growth.
Think of it like planting a small seed and watering it every day, instead of borrowing gallons of water you can’t repay. By focusing on profitability from day one, Karooooo grew into a mobility SaaS giant. Today, the company operates in 24 countries with 1.8 million+ subscribers, offering fleet management, vehicle tracking, and IoT-driven mobility solutions.
In May 2025, the strategy paid off. A stock surge on Nasdaq briefly pushed Calisto’s 65% stake to over $1 billion, officially making him Africa’s “newest tech billionaire.” Though his net worth dipped below that mark after a share sale in June, the message was loud and clear: sustainable growth can rival flashy funding.
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What This Means in Real Life
1. Proof That Bootstrapping Works
Calisto’s journey is living proof that African startups don’t have to rely on foreign VC money. His entire empire started with customer incentives, not outside investors. For young founders, it’s a reminder that the customer is the best investor you’ll ever have.
2. Profitable from Day One
While most startups burn cash for years, Karooooo has been profitable since inception. In Q1 2026 alone, it generated ZAR1.14 billion ($61M) in subscription revenue, up 18% year-on-year. That’s steady, predictable growth in a sector many overlook.
3. Beyond Fintech
Africa’s funding narrative is skewed towards fintech. But Calisto shows that mobility, logistics, and IoT can also produce billion-dollar companies. This shift matters, especially as transport and supply chains remain huge pain points across the continent.
4. Staying in Control
Unlike many founders who lose control after big VC rounds, Calisto still holds a 58% stake in Karooooo. That means he calls the shots. His story highlights the power of building with patience rather than chasing quick capital.
Why It Matters to You
Picture this: you’re sitting in Lagos traffic, or trying to track goods across Nairobi, or worrying about car theft in Johannesburg. Instead of chaos, imagine having tools that keep your car safe, your fleet efficient, and your costs under control. That’s what Karooooo does.
And here’s why it matters: as an entrepreneur, you don’t need millions upfront to solve real problems. Calisto shows that you can build globally by starting small, being resourceful, and focusing on profitability. His story speaks directly to anyone hustling with limited resources—you really can create something lasting.
The Big Takeaway
Zak Calisto’s rise and dip from billionaire status isn’t just about money—it’s about mindset.
In an ecosystem dominated by fintech hype, he proved that profitability, mobility solutions, and global expansion can thrive without heavy VC backing. Karooooo’s success shows Africa doesn’t have to follow Silicon Valley’s playbook.
The future of African tech might just belong to those who build slowly, sustainably, and with customers at the center. The next time you hear someone say “you can’t build without investors,” remember Calisto’s $10 startup that became a billion-dollar company.
