ICICI, Axis Banks Look To Move Away From DreamFolks After Service Disruptions; Others May Follow

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, sources said.

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 said.

Leading the charge are Axis Bank and ICICI Bank as well as Mastercard, they said, adding more banks are expected to follow suit.

While Axis Bank declined to comment, emails sent to ICICI Bank and Mastercard remained unanswered.

DreamFolks too did not immediately reply to email sent to its investor relations and other emails provided on its website.

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.

Adani, which manages seven airports across India, had in a statement said, "Passengers at airports across India have been experiencing disruptions in lounge access. This is due to the unexpected suspension of services by DreamFolks Services Ltd., a lounge access provider partnered with several banks, in violation of its service agreements with the affected airports." Operators such as GMR, Adani, and TFS together manage approximately 80-85% of the foot traffic through these facilities. DreamFolks currently serves as the third-party aggregator for all these lounges.

In the September 22, 2024 statement, DreamFolks had stated that it was addressing "a temporary disruption in services" and had gone on to state that all its "contractual agreements remain in full force" and that it was "fully compliant with our obligations and are executing our services accordingly." Next day, it stated that its "team has successfully resolved the integration issue at Adani Airports, ensuring seamless acceptance of all eligible cards at the lounges moving forward."

"Through meticulous troubleshooting, we have implemented a robust solution that guarantees smooth transactions for passengers and stakeholders alike. As a result, all eligible cards, including credit, debit, and membership cards will now be accepted at the lounges", it had said.

Sources said the service disruption led to certain banks, including American Express, transitioning to Adani Digital for lounge access at Adani-operated airports.

The disruption triggered lounge airports to directly work with banks to facilitate seamless services to passengers, they said.

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.