Macquarie analyst Brendan Carrig, however, played down the likelihood of another payments business bidding for Tyro. “Should there be a competing bid or other interest, we believe it is unlikely to come from another industry participant and would therefore need to come from private equity,” Carrig said.

Potentia said its bid represented a $693 million enterprise value for Tyro, a figure that includes company debt.

Tyro, which floated in 2019, has seen its shares slump 66 per cent this year, amid a wider plunge in the valuations of fintech businesses, and chief executive Robbie Cook announced he was leaving the firm to lead the Star Entertainment Group in June.

Tyro’s board, led by former Telstra boss David Thodey, said in a statement the price was “materially below Tyro’s fundamental value and highly opportunistic” saying the fintech was taking share from the banks in payments and business banking, and it had strong growth prospects. It signalled the door remained open to a higher offer.

“The Board will act in the interests of shareholders as a whole and will consider any credible change of control proposal it receives, but will only progress such a proposal if it believes it represents compelling value for shareholders,” it said.

Potentia is a software and technology-focused venture capital firm led by former MYOB boss Tim Reed and former head of Archer Capital Andrew Gray.

“We believe Tyro requires a level of business transformation that can be best undertaken under private ownership,” the fund said.

The Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.