As well as being home to a wide range of high quality blue chip shares, I believe the Australian share market is home to a number of small-cap shares with significant growth potential.
Whilst I would advise against having a portfolio solely of small-cap shares, I believe having a few in a balanced portfolio could help you beat the market.
Three which I think are worth a closer look at are listed below:
Due to the Big Un Ltd (ASX: BIG) share price coming under pressure from profit taking in recent weeks, I think investors have been presented with an opportunity to invest in a hyper growth company at a fairer price. Strong demand for its subscription-based video technology products and services means the company expects to deliver a 58% quarter-on-quarter increase in cash revenue to over $9 million in the fourth quarter. Ultimately, this means year-on-year cash revenue growth is expected to be in excess of 400%.
Much like Big Un, the GetSwift Ltd (ASX: GSW) share price has also come under pressure from profit taking in the last couple of weeks. I think this has created a great opportunity for investors to snap up shares in this fast-growing logistics platform provider. Thanks to a recent capital raising the company intends to accelerate its growth by expanding into other verticals. I expect this to result in strong earnings growth over the next few years as the number of deliveries handled by the platform explodes.
The Updater Inc (ASX: UPD) share price may be up over 130% since the turn of the year, but I don't believe it is too late to have a look at this exciting tech company. The US-based company provides an increasingly popular platform which aims to make the moving home process easier. Updater recently announced that it had surpassed 11% of all household moves in the United States during the second-quarter. This was the seventh successive quarter of growth. Due to the quality of the product, I expect this impressive growth to continue for some time to come.
