At the small end of the Australian share market, there are a number of companies with the potential to grow materially in the future.
Three that investors might want to get better acquainted with are listed below. Here's what you need to know about them:
BlueBet Holdings Ltd (ASX: BBT)
The first small cap share to watch is BlueBet. It is a mobile-first online wagering provider. It allows users to bet on all Australian and international racing and sports through its website and app. BlueBet has been growing very strongly thanks to the increasing popularity of mobile sports betting. This led to the company doubling its customer numbers over the last 12 months, underpinning strong wagering turnover growth. Positively, management is confident that this trend can continue and believes it is well positioned to substantially grow its current ~1.2% share of the market in Australia. It is also in the process of expanding into the massive US market.
Booktopia Group Ltd (ASX: BKG)
A second small cap ASX share to watch is Booktopia. This online book retailer has been growing at an explosive rate. For example, the company sold one item approximately every 4.7 seconds and shipped approximately 6.5 million items in the 12 months to 30 June 2020. Impressively, this has increased materially since then, with very strong growth reported in FY 2021. This has been driven by the shift to online shopping and its new distribution centre. The latter is allowing the company to capture the heightened demand and ship more books than ever.
Whispir Ltd (ASX: WSP)
A final small cap share to watch is Whispir. It is a software-as-a-service communications workflow platform provider. Whispir's platform allows businesses and governments to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. While it has been growing its recurring revenue at a strong rate over the last few years, it is still only scratching at the surface of its overall market opportunity. For example, management estimates that it has a total addressable market (TAM) of US$4.7 billion in the just United States.
