The likes of Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) weren't always multi-billion dollar tech companies.
At one stage they were small cap tech shares flying under the radar, just like the ones listed below.
Whether these three shares will follow in their footsteps, only time will tell, but I think they are well worth keeping a very close eye on. Here's why I like them:
ELMO Software Ltd (ASX: ELO)
The first small cap ASX tech share to watch is this 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 a sizeable market opportunity in the ANZ market and the potential to expand globally in the future. This is thanks to its platform being jurisdiction agnostic.
Volpara Health Technologies Ltd (ASX: VHT)
Another small cap ASX tech share to watch is this healthcare technology company. Volpara's software uses artificial intelligence imaging algorithms to assist with the early detection of breast cancer. Demand for its software has been growing strongly, leading to the company recently delivering a 172% increase in annual recurring revenue (ARR) to NZ$18 million in FY 2020. This is still only scratching at the surface of an estimated US$750 million ARR opportunity in breast cancer screening.
Whispir (ASX: WSP)
A final small cap ASX tech share to watch is this software-as-a-service communications workflow platform company. It provides an industry-leading software platform that allows users to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. During the first half of FY 2020, its annualised recurring revenue increased 22% to $36.7 million. Pleasingly, the second half looks set to be even stronger thanks to the work from home initiative.
