By Mohammad Haris,News18

Copyright news18

Shares of Dreamfolks Services on Wednesday hit a lower circuit of 5% to Rs 131.07 apiece on the NSE, after the company announced that it has discontinued airport lounge services in India. With this, its shares have fallen nearly 74% in the past year and about 70% in 2025 so far.
In a statement on Tuesday, the company, however, said other domestic services and the global lounge business will continue as usual.
The move would have a material impact, the company said, without giving more details.
“The company wishes to update that the services of domestic airport lounges have been discontinued to our clients, effective today. Impact of the same is material. The other domestic services and global lounge business will continue as usual. We reiterate that contracts with our clients remain active and the discussions with the clients on alternate customer value propositions are in progress,” Dreamfolks said in the BSE filing.
Dreamfolks, an aggregator that connects lounge operators with card networks and passengers, began facing challenges after airport operators started looking to offer lounge access directly.
The move comes just days after Travel Food Services terminated its contract with DreamFolks, which had been acting as one of the aggregators for banks and networks to provide lounge access across several of its lounges.
In August, the company had said that three of its customers — Encalm Hospitality, Adani Digital and Semolina Kitchens — would end their contracts, and that it is expanding focus on its global lounge business.
Earlier in July, Dreamfolks also said it was discontinuing certain programs for clients Axis Bank and ICICI Bank.
Dreamfolks on Tuesday said its contracts with clients are active and that discussions are ongoing to explore alternative services for customers.
(With inputs from agencies)