3 growing small cap ASX shares

Whispir (ASX:WSP) and these ASX small cap shares are growing at a quick rate. Here's what you need to know about them…

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All companies start somewhere and don't become blue chips overnight.

Three ASX shares that are at the start of their journeys are listed below. Here's what has investors watching them closely:

Carbon Revolution Ltd (ASX: CBR)

Carbon Revolution is a $350 million advanced manufacturing company that designs, manufactures, and markets single piece carbon fibre wheels for motor vehicles. This style of manufacturing wheels means the company is able to reduce the weight of them materially. Management estimates that these weight savings can result in up to 40% reductions in inertia. This is a big deal for car companies, which are always looking for ways to make their vehicles more efficient. Carbon Revolution counts the likes of Ford and Ferrari as customers. Last month Carbon Revolution reported quarterly revenue of $11.8 million, up 45.9% on the previous quarter and 26.3% on the previous corresponding period.

Mach7 Technologies Ltd (ASX: M7T)

Mach7 is a $223 million developer of enterprise imaging and informatics solutions for image viewing, storage, and workflow management. These solutions are able to be implemented individually, or as a comprehensive end-to-end image management and diagnostic viewing platform. The company has designed them to assist healthcare organisations with removing technology limitations to ensure patient information flows easily and can be accessed instantly. This helps to inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. In FY 2020 Mach7 reported a 102% increase in revenue to $18.9 million. This is still only scratching at the surface of its market opportunity. At the last count, management was estimating that the company's total addressable market is worth US$2.75 billion per year.

Whispir (ASX: WSP)

Whispir is a $367 million software-as-a-service communications workflow platform provider. Its popular platform automates communications between organisations and people. This enables users to improve their communications through automated workflows to ensure stakeholders receive accurate, timely, useful, and actionable insights. Whispir was a very strong performer in FY 2020. For the 12 months ended 30 June 2020, it posted a 25.5% increase in revenue to $39.1 million and ARR growth of 34% to $42.2 million. Management estimates that the Workflow Communications platform as a Service market could reach US$8 billion per year by 2024.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends MACH7 FPO and Whispir Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Carbon Revolution Limited. The Motley Fool Australia has recommended Carbon Revolution Limited, MACH7 FPO, and Whispir Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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