Dreamfolks shared that it manages different programs for Axis Bank and ICICI Bank. While some of these programs stopped effective July 1, 2025, the company still has active contracts with both banks, according to a press release issued the same day.
Dreamfolks is currently assessing how this change might impact its business and noted that the effects could be significant. The company mentioned that launching new programs or ending old ones is a regular part of its operations. Dreamfolks also assured that it will take steps to handle any challenges and will keep everyone informed about any major developments.
The Trouble Started with News Reports
On June 19, 2025, several news outlets reported that big banks like ICICI Bank, Axis Bank, and Mastercard were planning to leave Dreamfolks Services. These reports claimed that major clients wanted to work directly with airport lounge operators instead of using Dreamfolks as a middleman.
The news hit Dreamfolks stock hard, with shares dropping more than 10% in a single day. Stock exchanges NSE and BSE asked the company to explain what was happening.
The Root Cause: September 2024 Service Breakdown
The real problem began in September 2024 when Dreamfolks had a major service breakdown. On September 22, 2024, the company faced a "temporary disruption" that shut down lounge access at 49 lounges across 34 airports. Thousands of bank customers could not access airport lounges they had paid for.
The breakdown was so bad that Adani Airport said Dreamfolks had violated its service agreements. Travel Food and Services even threatened to take legal action against the company. Although Dreamfolks fixed the problem the next day, banks started looking for other options.
Dreamfolks Fights Back
In response to the June 19 media reports, Dreamfolks issued an official statement denying the news. The company said contract talks with clients happen every year and are normal business. They stated their relationships with all partners remain strong and that the media reports were false.
The company made it clear that no clients had actually left and that normal price negotiations were being mistaken for client departures.
Way Forward
With cessation of few of the programs now with the major banks, all eyes are on how Dreamfolks will navigate this turning point in its business in the coming days.
