It wasn't that long ago that Afterpay Ltd (ASX: APT) was a small cap share flying under the radar of most investors.
Today the buy now pay later is one of the 20 largest companies on the Australian share market and has generated mouth-watering returns for investors.
I believe this demonstrates how rewarding it can be to invest at the small side of the market.
With that in mind, I have picked out three small cap tech shares which I think have the potential to provide strong returns for investors throughout the 2020s.
Here's why I think they are worth watching very closely:
Bigtincan Holdings Ltd (ASX: BTH)
The first small cap share to watch is Bigtincan. It is a provider of enterprise mobility software which allows sales and service organisations to increase sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. It has a large number of big names using its platform. This includes Red Bull, Sephora, and banking giant Australia and New Zealand Banking GrpLtd (ASX: ANZ).
ELMO Software Ltd (ASX: ELO)
ELMO is a cloud-based human resources and payroll software company. It provides a unified platform to streamline processes for employee administration, recruitment, on-boarding, learning, performance, remuneration, compliance training and payroll. Demand has been growing strongly in recent years and led to further strong recurring revenue growth in FY 2020. Pleasingly, due to the quality of its software and its sizeable market opportunity, I believe there's plenty more growth to come from ELMO over the 2020s.
Whispir (ASX: WSP)
Whispir is a software-as-a-service communications workflow platform provider. It provides an industry-leading software platform that allows governments and organisations to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. Its platform has been experiencing incredible demand during the pandemic. This led to Whispir recently releasing a very strong fourth quarter update. That update revealed annualised recurring revenue growth of 35.7% to $42.2 million thanks to strong demand from new and existing customers.
