Dreamfolks Services shares tumble 20% in three days; why has the stock been falling? Explained

The stock has fallen 19.8% in the past three sessions (from the July 1 closing level of ₹236.55 to today's closing price of ₹189.70).

Why is the stock falling?

On July 1, after market hours, Dreamfolks Services, in its filing to exchanges, said that the company runs various programs for Axis Bank and ICICI Bank and that certain programs of these clients have been closed, with effect from July 1, 2025.

However, the service company added that its contracts with the mentioned clients were still valid.

Dreamfolks Services further said that while it is currently evaluating the exact potential impact of the aforementioned, it is likely to be material in nature.

"Activation of new programs/deactivation of existing programs is part of our regular business operations. Moreover, the company is committed to taking requisite actions for mitigating the above impact," the company said in its filing.

Dreamfolks Services said it remains committed to adhering to the highest standards of corporate governance and will continue to inform the exchanges of any material events in a timely manner as required under applicable laws.

What happened in June?

According to a report by PTI in June 2025, major Indian banks and card networks, including ICICI Bank, Axis Bank, and Mastercard, were looking to move away from aggregator DreamFolks Services Ltd. to establish direct partnerships with airport lounge operators, and others may also follow suit.

On September 22, 2024, 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 the impact on 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, PTI reported, citing sources.

Leading the charge are Axis Bank and ICICI Bank, as well as Mastercard, the report 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 emails sent to its investor relations and other emails provided on its website," the PTI report said.

September 2024 disruption

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, PTI said in its June 19, 2025, report.

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 is executing our services accordingly."

The 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."

Travel Food Services IPO

Another reason why Dreamfolks Services shares are in the deep red is the launch of the public issue of Travel Food Services, which is the company's competitor.

About Dreamfolks Services Limited

DreamFolks is a travel and lifestyle services aggregator, providing 'lounge services' at airports, railways, visa application centers, highways, and other services like access to social clubs, coffee at malls, golf games and lessons, meet and assist, airport transfer, duty-free, spa & wellness, F&B offers, e-sim, beauty and grooming, highway dining, etc.

DreamFolks provides these services using the in-house proprietary technology platform that allows its clients, such as banks, card networks, airlines, OTAs, and enterprises, to create custom offerings for their end consumers.

DreamFolks, the company says, manages the lounge and other benefits for most of the top banks, card network providers, and enterprises, including the top 5 credit card issuers in India, and has 100% coverage across airport and railway lounges in India.

The company was listed in September 2022 on both BSE and NSE. The company says it has a global footprint extending to 3000+ touchpoints in 100+ countries.