3 growing small cap ASX shares to watch closely

Keep an eye on these small cap ASX shares…

| More on:
woman looking surprised watching netflix

Image source: Getty Images

If you’re interested in gaining exposure to the small side of the market, then you might want to look at the small cap ASX shares listed below.

Here’s why these small cap ASX shares are ones to watch:

Damstra Holdings Ltd (ASX: DTC)

The first small cap to watch is Damstra. It is a growing integrated workplace management solutions provider which provides a cloud-based workplace management platform that is used by businesses globally. Its platform allows users to track, manage, and protect their workers and assets. Demand has been growing strongly in recent years and has continued in FY 2021. For example, during the third quarter, Damstra’s revenue increased 66% on the prior corresponding period to $6.9 million. This followed its highest ever monthly revenue in March and was underpinned by a 61% increase in active users to 689,000.

MyDeal.com.au Limited (ASX: MYD)

Another small cap to look at is MyDeal.com.au. It is an online retail marketplace with a focus on homewares, furniture, and technology. Like other ecommerce companies, MyDeal has been growing strongly over the last 12 months. This led to the company recently reporting full year sales growth of 111.1% to $218.1 million for the 12 months ended 30 June. This was underpinned by an 83.1% increase in customer numbers to 894,225 and significant momentum in Private Label sales during FY 2021.

Pointerra Ltd (ASX: 3DP)

A final small cap share to watch is Pointerra. It is a technology company that provides a powerful cloud-based solution for managing, visualising, and sharing massive 3D point clouds and datasets. Pointerra’s platform is able to extract vital information from the data that would otherwise take many hours to do. At the end of April, the company’s annualised contract value (ACV) stood at US$7.89 million. This is still only a very small fraction of a total market opportunity that management estimates is worth US$500 billion.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor 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 has recommended Damstra Holdings Ltd and Pointerra Limited. The Motley Fool Australia owns shares of and has recommended Damstra Holdings Ltd. The Motley Fool Australia has recommended Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Small Cap Shares