2 exciting small cap ASX shares

Booktopia Group Ltd (ASX: BKG) and this exciting ASX small cap share could be ones to watch in 2021. Here's why…

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If you're a fan of small cap shares, then you might want to take a look at the ones listed below.

They have been tipped as companies that could have bright futures. Here's what you need to know about them:

Booktopia Group Ltd (ASX: BKG)

Booktopia is a fast-growing online book retailer which recently listed on the Australian share market. Late last month it released its half year update and revealed that it had a very strong finish to the calendar year. The company delivered both a record month in December and a record half.

According to the release, Booktopia shipped a massive 728,000 units during the final month of the half, bringing its total shipments to 4.2 million units for the six months. This was a 40% increase in shipments on the same period last year and underpinned a 52% increase in unaudited half year revenue to $113 million and a 506% increase in adjusted EBITDA to $8 million.

A key driver of its growth was its investment in additional automation and the increased capacity of its distribution centre. The first stage of its $20 million expansion and automation project at the Lidcombe Distribution Centre in Sydney was completed in November. It increased Booktopia's outbound capacity from 30,000 units to 60,000 units per day.

Cluey Ltd (ASX: CLU)

Another small cap to watch is Cluey. Like Booktopia, the education technology company is recent listing on the Australian share market.

Cluey integrates personal tutoring with its scalable technology platforms. It then utilises data and learning analytics to support the delivery of quality learning to thousands of Australian students.

Last month it released its second quarter update, which revealed cash receipts from customers of $3.2 million in the second quarter and $7 million for the six months to 31 December. This represents an increase of 298% and 366%, respectively, on the prior corresponding periods. Management advised that its growth was driven by a significant increase in learning sessions over the period.

Looking ahead, Cluey is forecasting revenue of ~$15.5 million in FY 2021. This will be a 218% year on year increase.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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