If you're interested in gaining a little exposure to the small cap side of the market, the three shares listed below could be worth considering.
I believe they have a lot of potential and could generate strong returns for investors if they fulfil it. They are as follows:
Serko Ltd (ASX: SKO)
Serko is a leading travel and expense technology solution provider. It counts a large number of blue chip companies amongst its customer base and a global travel giant as a partner. That travel giant, Booking.com, even became a cornerstone investor in a recent capital raising. I believe this capital raising and the quality of its offering have put Serko in a strong position to continue growing at an above-average rate for some time to come. This year the company is currently on course to achieve its operating revenue guidance of an increase of 20% to 40%.
Straker Translations Ltd (ASX: STG)
Straker Translations is a translation services platform provider. It uses a combination of artificial intelligence and human intelligence to provide highly efficient language translation services at scale. It recently released its half year update and revealed a 13.3% increase in revenue to NZ$13.6 million. Whilst this is a slowdown on the growth it achieved in FY 2019, this was largely down to its shift away from personal use customers. A stronger second half is expected. Especially after it was selected as one of five preferred vendors for a major global enterprise during the first half. Management expects revenue to rapidly increase from that customer as multiple old vendor agreements end on their side.
Whispir (ASX: WSP)
A final small cap to consider is Whispir. It is a software-as-a-service communications workflow platform provider. It provides an industry-leading software platform that allows companies to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. A number of blue chips are using the platform such as Disney and Foxtel, which I believe is a testament to the quality of the product. Solid demand from new and existing customers led to Whispir reporting Annualised Recurring Revenue of $34.5 million in the first quarter of FY 2020. This was up 10% since the end of June and means Whispir is ahead of its prospectus forecast.
