If you're interested in gaining exposure to the small side of the market, then you might want to take a look at the small cap ASX shares listed below.
Here's why these small cap ASX shares are ones to watch:
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MyDeal.com.au Limited (ASX: MYD)
MyDeal.com.au is an online retail marketplace with a focus on homewares, furniture, and technology. It has been growing very strongly during the pandemic. In February, the company released its half year results and revealed a 217% increase in gross sales to $126.7 million. Underpinning this growth was increased repeat purchasing and a jump in active customers to 813,764. Despite this strong result, the MyDeal share price has been dragged lower due to weakness in the tech sector. So much so, it is now trading 12% lower than its IPO price of $1.00.
PlaySide Studios Limited (ASX: PLY)
PlaySide Studios is one of the largest independent video game developers in Australia. At present, the company has a total of 55 titles developed, including games based on its own original intellectual property and games developed with Hollywood studios. The latter comprises titles relating to Jumanji, The Walking Dead, and Disney Pixar's Cars. From these titles, PlaySide delivered record sales revenue of $5 million during the first half of FY 2021. This was up 63% on the prior corresponding period. The good news is that this is just a tiny fraction of its global market opportunity. Management estimates that it has a US$159 billion global addressable market.
Serko Ltd (ASX: SKO)
Another small cap to watch is Serko. It is the online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. Zeno Travel provides AI-powered end-to-end travel itineraries, cost control and travel policy compliance to corporate customers. Whereas Zeno Expense allows users to automate and streamline the expense administration function, identify out-of-policy expense claims, and prevent fraud. Demand for its offering fell heavily during the pandemic, but is expected to bounce back strongly once trading conditions return to normal. A new (and significant) deal with travel giant Booking.com will also be a big boost.
