Adani Digital, Semolina Kitchens and Encalm Hospitality have discontinued airport lounge services with business main Dreamfolks, seemingly impacting firm’s operations and monetary efficiency. Dreamfolks is now focusing extra on global lounge business whereas actively repositioning in direction of diversified choices.
The suspension of companies by Adani Digital and Semolina Kitchens will come into impact from September 15, 2025. Encalm Hospitality will discontinue its companies provide beginning November 01, 2025.
“With respect to Encalm Hospitality, the Firm filed a petition below Part 9 of the Arbitration and Conciliation Act, 1996 (India), looking for interim injunctions on the Honourable Excessive Courtroom of Delhi,” the corporate mentioned.
Dreamfolks assured that companies are persevering with uninterrupted, and contracts with purchasers stay lively presently. It’s participating with purchasers to safeguard relationships and is engaged on different buyer worth propositions.
The airport lounge operator has anticipated an impression on operations and monetary efficiency. As a response, Dreamfolks is now planning to give attention to its international lounge enterprise.
“Within the occasion of discontinuation of airport lounge companies by above named suppliers, the corporate might expertise a fabric impression on its operations and monetary efficiency,” Dreamfolks mentioned.
“In response to those developments, the Firm has strategically accelerated its give attention to international lounge enterprise whereas actively repositioning in direction of diversified and sustainable choices, thereby making certain long-term worth creation for purchasers and stakeholders,” it added.
Dreamfolks Providers is an aggregator that connects lounge operators with card networks and passengers. The corporate’s troubles started with airport operators seeking to immediately present lounge entry to passengers throughout India. The corporate in July mentioned it was closing sure programmes for purchasers Axis Financial institution and ICICI Financial institution.
Dreamfolks CEO Liberatha Kallat is in an interview with CNBC-TV18 that the transfer got here after “stress ways by two giant airport operators, who’ve entered the identical line of enterprise.” Nevertheless, Kallat didn’t title the operators.
Shortly after, Arun Bansal, CEO of India’s high personal airport operator Adani Airport Holdings, mentioned in a put up on LinkedIn that India’s “fintech revolution” eradicated the necessity for middlemen throughout sectors.
Main airport operators in India, together with Adani Airports and GMR Airports, together with Journey Meals Providers are actually providing their very own or borrowed platforms — chopping out the intermediary,
Main airport operators, together with Adani Airports (which runs airports together with Mumbai) and GMR Airports (which operates the Delhi airport), together with Journey Meals Providers (which went public a number of weeks in the past), are actually providing their very own or borrowed platforms — chopping out the intermediary.
In an analogous collection of penalties, ICICI Financial institution and Axis Financial institution introduced cessation of their ties with Dreamfolks. These two banks are two of the biggest issuers of bank cards with lounge entry perks. Shares of Dreamfolks are down by virtually 69 per cent to this point this yr.
