The JSE Small Cap Index recently hit a new all-time high, signalling renewed investor interest and momentum in smaller, high-growth companies. If you’re looking for opportunity, 2025 could be the year to focus on nimble, innovative small caps that have the potential to deliver outsized returns.
From fintech innovators to tech-driven service providers and financial turnaround stories, some of SA’s most exciting growth opportunities are right under the radar. Below, I highlight three JSE small caps poised to make a big impact in 2025 – companies with strong fundamentals, proven growth strategies, and leadership aligned with shareholder success.
These are the stocks that could define the year ahead and deliver meaningful upside for investors who spot them early.
2025 JSE Small Caps to Watch #1: Capital Appreciation (JSE: CTA)
Over the past few years, fintech has been transforming the financial services industry, upending old business models and creating new leaders in money.
Mobile payments and digital lending have changed how consumers engage with financial services, and the growth isn’t just global – it’s happening in SA too. According to BCG’s Global Payments Report, SA’s payment sector is expected to more than double to $22 billion (over R380 billion) in the next few years.
One JSE stock well-positioned to benefit is Capital Appreciation (JSE: CTA). Its payment division currently generates roughly R690 million in revenue – but even capturing a small slice of South Africa’s booming market could see revenues 5x or even 10x higher.
CTA is also tapping into the rapidly growing SaaS market, now worth over $250 billion globally and projected to reach $1 trillion by 2030. Through Synthesis, its software and cloud solutions business, CTA helps businesses with cloud infrastructure, data analytics, and enterprise software.
Other key holdings include:
• AssetPool – a cloud-first SaaS platform transforming how businesses manage, track, and maintain assets.
• Dariel – a 22-year-old technology company delivering software across healthcare, telecoms, hospitality, mining, finance, insurance, and fintech.
CTA combines payments and software exposure, positioning it to capture Africa’s digital transformation and fintech boom.
2025 JSE Small Caps to Watch #2: IOCO Ltd (JSE: IOC)
You’ll remember EOH Holdings (JSE: EOH) – once a staple in investor portfolios. But between late 2016 and early 2017, corruption scandals and a debt-fuelled “growth at all costs” strategy sent its share price tumbling from +R170 to just R3.
Enter Stephen van Coller, tasked with turning the company around. He rooted out corruption (earning praise at the Zondo Commission), sold non-core businesses, raised R550 million to reduce debt, and cut costs, including a 60% staff reduction. Investor sentiment remained muted – until May 2024, when new leadership arrived: Marius de la Rey (interim CEO), Veronica Motloutsi, Dennis Venter, and Rhys Summerton. Since then, the share price has surged +200%.
EOH rebranded as IOCO Ltd (JSE: IOC). De la Rey stepped down; Summerton and Venter are now joint CEOs, taking no cash salary – their rewards are purely tied to share price performance. Leadership across IOCO’s five divisions is similarly incentivized, fully aligning management with shareholder value.
Restructured, rebranded, and ready for growth, IOCO is a leading technology services provider driving South Africa’s digital transformation:
1. Digital Enablement: Software, data management, cloud, and intelligent automation via AWS, IBM, and UiPath.
2. Infrastructure Services & Applications: Data centres, cybersecurity, and software/hardware solutions with Dell, Oracle, VMWare, Fortinet, and more.
3. Connected Industrial Ecosystems: OT software and solutions for mining and manufacturing with AVEVA, Schneider Electric, GE, Rockwell Automation.
International operations in the UK, Switzerland, Egypt, and the Middle East are growing rapidly, contributing 11% of revenue.
With a total addressable market of R156B in SA, $58B in the Middle East, and $185B in the UK, IOCO’s 2024 revenue of just R6 billion highlights enormous room for growth – making it a compelling investment for the long term.
2025 JSE Small Caps to Watch #3: Finbond (JSE: FGL)
Started in 2002, Finbond (JSE: FGL) is a leading South African Financial Services institution that operates as a mutual bank. The company listed on the JSE in 2007 and received its Mutual Banking license from the South African Reserve Bank in 2012.
Today, Finbond conducts its business through two divisions focused on:
• Investment and Savings Products
• Micro Credit and Insurance Products
Despite its modest market capitalisation of R505 million, it operates an extensive network of 439 branches in SA, where it derives 66% of its revenue, and 180 branches in North America, contributing the remaining 34%.
The company primarily serves lower-income and underbanked consumers who require small short-term loans
In SA, the average loan size is R2,000 with an average term of 3.2 months, while in North America, the average loan size is $589 with an average term of 4.4 months. It’s a cautious lending strategy that helps Finbond mitigate credit risk.
Finbond’s 2025 financial results demonstrate a strong turnaround:
• Revenue grew 7.9% to R1.7 billion
• Profit soared from R0.6 million to R31.8 million
• Gross loans and advances increased by 4.4% to R1.11 billion
The SA business has rebounded more swiftly than its North American counterpart, allowing Finbond to shift its focus towards expansion. Besides increasing the number of branches, the company is also growing its business lending book, an area where it believes the big SA banks have tightened lending criteria too much, affecting good businesses with strong payment histories. Such a move will also serve to diversify revenue streams beyond short-term consumer loans.
Leadership is tightly aligned with shareholders: Founder and CEO Willem van Aardt holds 34.4%, and value investor Sean Riskowitz owns 29.3%, together controlling 63.7% of shares.
With its share price up over 50% in 2025, Finbond’s turnaround is real, and the company is positioned for continued growth and strong investor returns.
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