In response to worries about potential disruptions, Kallat remarked, “What we are discussing pertains to last year, which involved a technical [issue].” She clarified that although there was a momentary downtime in card eligibility systems, it did not result in any client departures. “All clients are still on board… We are thoroughly integrated with all of our banking partners,” she emphasized.
This clarification comes after a June 19 PTI report indicating that leading Indian banks such as ICICI Bank and Axis Bank, alongside Mastercard, might shift away from DreamFolks to collaborate directly with airport lounge operators.
Kallat stressed that no communications regarding such shifts have been received from clients, reaffirming that contract renewals and negotiations are standard practice. “All contracts remain intact and all programs continue,” she stated, describing the situation as “business as usual.”
DreamFolks has been acquiring new clients, with Kallat mentioning, “We have onboarded nearly 30 enterprise clients.” The company is also expanding into services like social clubs and coffee offerings in malls to cater to growing client demands for unique services for their cardholders.
Looking forward, the company aims to diversify its revenue streams. “In the next three to four years, these new services will make a significant contribution to our topline,” she noted, highlighting that DreamFolks anticipates around 50% of future revenue to come from sectors beyond its primary lounge access business. The company’s lounge network has expanded to over 100 countries.
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Regarding competition, Kallat acknowledged its perpetual presence. “Major tech companies have also attempted to enter this space… but DreamFolks stands out due to the value and trust we provide,” she remarked.
On the financial front, Kallat reaffirmed margin guidance between 11% and 13%, urging stakeholders to await the forthcoming quarterly report for updated financial information. “We are very optimistic about how the business is progressing,” she stated.
Despite these reassurances, the company’s stock has plummeted more than 51% over the last year, with a current market capitalization of ₹1,248.91 crore.
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