Although a company like Ramsay Health Care Limited (ASX: RHC) seems to have been a blue chip share forever, it is worth remembering that it was a small cap at one point.
The private hospital operator hit the ASX boards back in September 1997 and has gone onto become one of the largest companies on the local market.
Given that its shares were trading at $1.15 shortly after listing and are now fetching $66.99, early investors have done incredibly well. I believe this demonstrates why having a little exposure to the small side of the market can be a very good thing for a portfolio.
With that in mind, here are three small cap ASX shares I think have a lot of potential:
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is a fast-growing provider of enterprise mobility software. Its Bigtincan Hub's AI-driven real-time automation enhances the customer experience, and gives sales and marketing teams the tools they need to deliver stronger results. Demand for its software has been growing strongly in recent years and this has continued to be the case during the pandemic. As a result, the company expects to deliver on its 30% to 40% organic revenue growth target in FY 2020.
Mach7 Technologies Ltd (ASX: M7T)
Mach7 is a medical imaging data management solutions provider. Its software helps inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. It has been a positive performer in FY 2020 and expects to report revenue of at least $18 million and its first positive EBITDA result. Looking ahead, its future looks very bright. Especially after its recent acquisition of leading provider of enterprise image viewing technology Client Outlook. This acquisition has increased Mach7's total addressable market from US$0.75 billion to US$2.75 billion.
Whispir (ASX: WSP)
A final small cap to look at is Whispir. It is a software-as-a-service communications workflow platform provider. Whispir enables businesses to improve their communications and ensures that people everywhere receive timely, useful, and actionable content in a manner that reflects their individual needs and preferences. Its platform has been experiencing incredible demand during the pandemic. This appears to have positioned Whispir to deliver a very strong full year result this month. Given the quality of its offering and its large market opportunity, I expect more of the same in FY 2021 and beyond.
