Dreamfolks Shares In Focus After Travel Food Services Terminates Key Contract
The termination follows unsuccessful attempts to renegotiate commercial terms and take effect on Sept. 15.
DreamFolks Services Ltd. is set to face further pressure as Travel Food Services Ltd. announced the termination of its extended airport lounge access services agreement with the company.
The termination follows unsuccessful attempts to renegotiate commercial terms and take effect on Sept. 15, 2025, Travel Food Services confirmed in an exchange filing on Thursday, after market hours.
The statement added that the company, via its subsidiary Eliteassist Technology and Services Private Ltd., plans to engage directly with banks and networks, in keeping with recent trends in the airport lounge business.
Earlier, Adani Airports launched its very own platform for lounge access, ditching third-party apps and intermediaries such as DreamFolks.
Meanwhile, media reports have recently indicated that Adani Digital, Semolina Kitchens and Encalm Hospitality have discounted airport lounge services with DreamFolks, also effective Sept. 15.
Operators such as Adani Airport Holdings Ltd., GMR Airports Ltd., and TFS cumulatively manage around 80-85% of the foot traffic at the airport lounges across the country.
DreamFolks currently serves as the third-party aggregator for all these lounges.
ICICI Bank, Axis Bank, and Mastercard are among the stakeholders who are reportedly mulling over a disassociation with DreamFolks.
Since June, shares of DreamFolks have tumbled almost 50% and over a one-year period, the stock has tanked 70%.
Travel Food Services' exit comes on the back of earlier disruptions in DreamFolks' Services. The company received flak in September last year following a disruption that affected 49 lounges at 34 airports across the country.
The sheer extent of the disruption even led Travel Food Services, a food and beverage master franchise that manages airport lounges in Kolkata and Chennai, to threaten legal action against DreamFolks.
In the exchange filing, TFS said it views the recent development as an opportunity to enhance service efficiency and advance its fintech evolution.
TFSL further states that the contract termination with DreamFolks will not significantly impact its business operations.
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