3 small cap ASX growth shares I’d buy with $1,000

Small cap shares are often regarded as more speculative and higher risk/reward investments due to the size of the company. However, these three small cap ASX growth shares have all taken significant strides forward and, I believe, are worthy of a closer look. 

3 ASX growth shares I’d buy

1. Selfwealth Ltd (ASX: SWF) 

Selfwealth is Australia’s fastest-growing share trading platform for retail investors and leads the market with its $9.50 flat-fee brokerage. Its award-winning flat fee is not only great value but Australia’s only flat-fee broking platform. FY20 has been a significant growth period for Selfwealth with its revenues soaring 313% to $8.6 million and active traders increasing by 235% to 46,445. The company is fast approaching cash flow positive with FY20 cash burn sitting at $147,000, down from $3.4 million. COVID-19 has accelerated tailwinds for brokers with an uptick in general interest for the markets and investing. The platform intends on expanding its services to include United States trading in 1H21. The US market is the most popular international market for Australians. With a clear value proposition for customers, Selfwealth could be a small cap ASX growth share worth looking into. 

2. Bigtincan Holdings Ltd (ASX: BTH) 

Bigtincan is a sales enablement platform that helps organisations grow customer engagements into long-term valued relationships. This involves sales content management, sales training and coaching, document automation and internal communications software. The company continued to deliver on its growth strategy with a 56% increase in revenue to $31 million while annualised recurring revenue increased 53% to $35.8 million. Its key achievements for FY20 include three acquisitions to grow its capability in data science, infrastructure for scale and extended investment into UI/UX. At this point in time, the company expects revenue to be in the range of $41-44 million and ARR to be in the range of $49-53 million for FY21. Despite its market capitalisation of around $450 million, this ASX growth share has a comfortable cash position of $71.9 million which will allow it to explore potential M&A opportunities. 

3. Money3 Corporation Limited (ASX: MNY) 

Money3 is a specialist provider of consumer finance for the purchase or maintenance of a vehicle in Australia and New Zealand. Its unique business model and approach to customer care attracts customers that are often under serviced by mainstream banks. The company has over 50,000 active customers in ANZ with over $1 billion in vehicles financed since inception. Its FY20 performance was solid, with a 35.3% increase in revenue to $124.0 million and 30.1% increase in NPAT. The company has demonstrated a 5-year compound annual growth rate of 33.1% for revenue, 18.4% for EPS and 32.3% for its gross loan book. I believe these growth figures make it good value against the likes of other ASX growth shares, especially taking into consideration its price-to-earnings (P/E) ratio of just 16.

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Lina Lim 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 BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN FPO. 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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