If your risk profile allows you to invest in small cap ASX shares, then you might want to take a look at the ones listed below.
I believe all five of these small cap shares have strong growth potential and could be future stars of the ASX. Here's why they are on my watchlist:
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is a provider of enterprise mobility software. Its software allows sales and service organisations to increase their sales win rates, reduce costs, and improve customer satisfaction through improved mobile worker productivity. Demand for its offering continues to grow from blue chip companies. This looks set to drive strong revenue growth again in FY 2020 despite the pandemic.
ELMO Software Ltd (ASX: ELO)
Another small cap ASX share which I think has a lot of potential is ELMO. It is a cloud-based human resources and payroll software company. ELMO provides users with a unified platform that streamlines processes such as recruitment, on-boarding, learning, and payroll. It has massive market opportunity in the ANZ market and the potential to expand globally in the future.
Nitro Software Ltd (ASX: NTO)
I think Nitro Software is a small cap ASX share worth keeping an eye on. It is a software company aiming to drive digital transformation in organisations around the world across multiple industries. Its core solution is the Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.
Volpara Health Technologies Ltd (ASX: VHT)
Another small cap ASX share to watch is Volpara Health Technologies. It is a provider of software that uses artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer. Demand for its software continues to grow at a rapid rate. So much so, last week it reported a 153% increase in full year revenue.
Whispir (ASX: WSP)
A final small cap to watch is Whispir. It is a software-as-a-service communications workflow platform provider. Its industry-leading software platform allows organisations to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. Demand has been increasing strongly during the pandemic, putting it in a position to deliver a very strong full year result.
