Shares of Dreamfolks Services extended losses for second day on June 20 despite the company's clarification on not losing any clients.
On June 19, PTI reported, citing sources, that major Indian banks and card networks, including ICICI Bank, Axis Bank, and Mastercard, are looking to move away from aggregator DreamFolks Services Ltd to establish direct partnerships with airport lounge operators, and others also may follow suit.
At 9:51 am on June 20, Dreamfolks shares were trading 3.6% lower at Rs 227.5 apiece, thus extending their two-day losses to nearly 15%. The 52-week low of the stock is Rs 209 and 52-week high is Rs 522. The market capitalisation of the stock is Rs 1,211 crore.
On September 22 last year, DreamFolks -- a global travel and lifestyle services aggregator that offers lounge access services at several airports -- had witnessed "a temporary disruption in services" that led to impact lounge access of thousands of customers of banks and card networks.
Though the issue was resolved the next day, it sent the banks and card networks to explore other alternatives, three sources familiar with the matter told PTI.
Later on June 19, Dreamfolks denied the media reports and said "there is no material impact of the referred articles on the company".
"Contract negotiation is a part of the regular business process, which is carried on annually with the clients and has no relation with the alleged news. Our relationships with all our partners remain strong and fully intact. We work closely with more than 50 clients and as a practice, we enter into MSA’s for five years with an annual price escalation. This business practice has been going on since the inception of the Company," said Dreamfolks in a stock exchange filing.
DreamFolks, which counts among major airport lounge operators in India, claims to command 90% market share in the country's domestic lounge access market for debit and credit card holders.
The September disruption saw flyers nationwide facing issues in accessing airport lounges. According to reports, there was a sudden closure of at least 49 lounges across 34 airports in India.
Such was the extent of the trouble that Travel Food and Services, a food and beverage master franchisee that manages the airport lounge in Kolkata and Chennai, had reportedly threatened legal action against DreamFolks.
Founded in 2013, DreamFolks, a listed entity, is a leading airport services aggregator in India, facilitating access to various airport-related services for travelers, and offering a platform for clients like banks, card networks and airlines. A significant chunk of its revenues and profits comes from the airport lounges.
For FY25, it reported a 14% growth in revenue to Rs 1,292 crore. However, its net profit took a hit, declining by 5% to Rs 65 crore. Earlier in 2025, the management announced plans to increase revenues from non-lounge services. Other services that it provides at the airport are food and beverages, spa and wellness, meet and assist, and airport transfers.
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