Subscribe to DreamFolks Services: Sushil Finance

Sushil Finance IPO report on DreamFolks Services

Dreamfolks is dominant player and India's largest airport service aggregator platform facilitating an enhanced airport experience to passengers leveraging a technology driven platform. It began effective operations in 2013 by facilitating lounge access services for the Consumers of Mastercard and, currently, provide services to all the Card Networks operating in India including Visa, Mastercard, Diners/Discover and RuPay, and many of India’s prominent Card Issuers. Its asset-light business model integrates global card networks operating in India, credit card and debit card issuers (Card Issuers) and other corporate clients, in India, including airline companies with various airport lounge operators and other airport related service providers (collectively, the Operators) on a unified technology platform. It facilitate customers of Clients’(Consumers) access to the following airport related services (i) lounges, (ii) food and beverage (iii) spa, (iv) meet and assist, (v), airport transfer (vi) transit hotels /nap room access, and (vii) baggage transfer, (collectively, the Services). Its dominance is underpinned by facilitating access to 100% of the 54 lounges currently operational in India, and it also enjoyed a market share of over 95% of all India issued credit card and debit card (Card Based) access to airport lounges in FY22. As FY22, through partnerships with other service providers, it has global footprint extending to 1,416 Touch-points in 121 countries across the world out of which, 244 Touch-points are present in India and 1,172 Touch-points overseas.

Valuation and Outlook

Despite decrease in Profit, EBITDA and other financial ratios between FY20 to FY22, there is increase in average revenue per passenger in FY22 to 800 from 752 in FY20. At upper price of Rs.326, the issue is aggressively priced at P/E of around 100. Beside fundamentals are overpriced, company has advantage of first mover and also rising trend of air travel experience, investors can invest for medium to long term horizon.