In today’s fast-paced world, airports serve as gateways to international travel, business, and commerce. Navigating through them seamlessly can be a stressful experience for travelers. DreamFolks Services Limited, established in 2013 and headquartered in Gurugram, India, has revolutionized airport-related services through its technology-driven platform, making it a global leader in airport service aggregation. This remarkable journey from inception to becoming a publicly listed company and a dominant player in its industry exemplifies resilience, innovation, and success.
The Vision and Establishment of DreamFolks
DreamFolks Services Limited was founded by visionary entrepreneurs Liberatha Peter Kallat, Dinesh Nagpal, and Mukesh Yadav. Each promoter initially held a significant share of the company, with Kallat and Nagpal owning 33% each and Yadav holding the remaining 34%. Their shared vision was to simplify and enhance the airport experience by offering travelers easy access to airport lounges and other related services through a unified platform. This idea would eventually lead DreamFolks to become India’s largest airport service aggregator.
In 2013, the company began by facilitating lounge access services exclusively for Mastercard users. This was the first step in what would soon become a much larger enterprise. DreamFolks quickly identified the growing demand for premium airport services and positioned itself as the go-to platform for airport lounge access. It built strong partnerships with key stakeholders in the industry, including card networks and card issuers, which enabled it to scale rapidly.
Going Public: A New Chapter in DreamFolks’ Journey
The company’s milestone came in September 2022, when it decided to go public. The initial public offering (IPO), which opened on August 24, 2022, was a significant event. DreamFolks offered up to 1.7 crore equity shares through an Offer for Sale (OFS). The IPO was a huge success, raising ₹562 crore (equivalent to ₹596 crore or US$71 million in 2023). On the first day of trading, the stock gained a premium of 55% over its issue price of ₹326. This marked a turning point for DreamFolks, as it transitioned from a privately held company to a publicly listed entity on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The IPO also diluted the promoters’ stake by 33%, allowing new investors to become a part of this growing success story. Global and domestic investors showed great interest, further validating the company’s robust business model and market potential. Before the IPO, the company had raised ₹253 crore from 18 anchor investors, including marquee names from the global and domestic investment landscape.
Dominating the Indian Airport Lounge Market
DreamFolks has been instrumental in revolutionizing the airport lounge industry in India. By October 2022, the company had 100% coverage across 54 airport lounges in the country, boasting a market share of over 95% for all India-issued card-based access to domestic lounges. This incredible market penetration is a testament to DreamFolks’ ability to scale its operations and cater to the growing demands of travelers.
In FY 2021-22, the company served 68% of the overall lounge volume across both domestic and international airports in India. The company’s success can be attributed to its continuous focus on improving customer experiences through technological innovation and expanding partnerships with key players in the ecosystem.
In July 2021, DreamFolks held an astounding 90% market share in India, further establishing its dominance in the airport services sector. By then, DreamFolks had expanded its services to 140 countries globally, making it a truly international player.
Expanding the Service Portfolio
While DreamFolks initially started as a lounge aggregator, the company has significantly expanded its service portfolio over the years. It now offers a wide range of airport-related services, including food and beverage options, meet-and-assist services, airport transfers, spa facilities, nap rooms or transit hotels, and even baggage transfer services. These additional offerings have strengthened DreamFolks’ value proposition, enabling it to cater to a broader audience of travelers seeking convenience and comfort at airports.
One of the company’s key strategies has been to partner with leading card networks and issuers, such as Mastercard, Diners, Discover, Rupay, ICICI, Axis, Kotak Mahindra, HDFC, and SBI. These partnerships have allowed DreamFolks to offer seamless access to airport services to a wide range of cardholders, further solidifying its market leadership.
Strategic Partnerships and Global Reach
DreamFolks’ success is not limited to the Indian market. The company’s strategic approach to partnerships has helped it expand its footprint globally. In June 2021, it partnered with Go First (formerly GoAir) to offer lounge services across 30 domestic terminals and 12 international terminals in India. This partnership provided travelers with access to lounges equipped with food and beverage services, entertainment, free Wi-Fi, and business center facilities.
In September 2022, DreamFolks further expanded its services by partnering with nine lounges across eight railway stations in India. This diversification into railway lounges highlights the company’s commitment to providing premium services not just at airports but across multiple travel hubs.
Additionally, in December 2022, DreamFolks partnered with Vidsur Golf, which allowed its customers access to over 250 golf courses across India and the Asia Pacific region. This partnership marked a significant diversification of DreamFolks’ service offerings, adding a luxury lifestyle component to its portfolio.
In March 2024, DreamFolks entered into a strategic partnership with Healthians, further expanding its value-added services for travelers, offering health and wellness solutions at airports.
Financial Performance and Future Prospects
DreamFolks has shown impressive financial growth despite facing challenges due to the COVID-19 pandemic. In the second quarter of FY23, the company recorded a profit of ₹14.78 crore (equivalent to ₹16 crore or US$1.9 million in 2023), with revenue from operations growing to ₹171.24 crore (equivalent to ₹181 crore or US$22 million in 2023). This marked a significant recovery from the downturn caused by pandemic-related travel restrictions, which had severely impacted its financials in FY21.
Looking ahead, DreamFolks is well-positioned for continued growth. With a robust business model, a wide range of services, and a strong presence in both domestic and international markets, the company is expected to capitalize on the rebound in global travel. The increasing demand for premium airport services, coupled with DreamFolks’ focus on technology-driven solutions, will likely drive its future success.
The Impact of Recognition and Awards
In addition to its financial and operational successes, DreamFolks Services Limited has also gained recognition for its market influence and business acumen. In a recent achievement, DreamFolks was honored at the 7th Edition of ET Now Iconic Brands of India 2024, a testament to its growing reputation and influence in the market. This recognition serves as further validation of the company’s relentless pursuit of excellence and innovation in the airport services industry.
Conclusion
DreamFolks Services Limited stands as a shining example of entrepreneurial success, innovation, and strategic growth. From its humble beginnings as an airport lounge aggregator in 2013, the company has evolved into a comprehensive airport services provider with a global footprint. By leveraging technology, forging strategic partnerships, and continuously expanding its service offerings, DreamFolks has set itself apart as a leader in the industry. As travel continues to recover and evolve, DreamFolks is well-equipped to maintain its dominance and continue delivering exceptional value to its customers and shareholders.
