Mumbai, June 19, 2025 – Shares of DreamFolks Services, India’s leading airport lounge access aggregator, plummeted almost 4% today after ICICI Bank, Axis Bank, and Mastercard‘s news surfaced that they are no longer relying on the company for lounge services. Instead, they are looking for direct partnerships with airport lounge operators

What triggered the crash?

The banks’ decision is a result of a temporary disruption that happened on September 22 last year. A DreamFolks’ technical error took an impact on the number of customers—about 49 lounges across 34 airports—that were left being unable to access lounges. The problem was solved within 24 hours, nevertheless, it created a lack of confidence among the banks that they lost.

Who’s stepping away?

• ICICI Bank is cited as the source of a decision to establish direct partnerships with lounge operators instead of DreamFolks as the customer.
• Axis Bank and Mastercard have taken the same approach.
• Other banks might soon follow the same pattern, according to insiders in the market.

What this means for DreamFolks

• Market share under pressure: DreamFolks controls around 90% share of the Indian domestic lounge access market A change of tactic on part of big banks and card networks can knock this off.
• Stock performance: DreamFolks stock finished at about ₹254.65, down roughly 3.2% today, registering a nearly 4% intraday drop
• Long-term trend: The stock was definitely on a downward spiral and had lost almost 37% in six months and 47% in the last year.

Who’s stepping away?

• ICICI Bank to have direct tie-ups with lounge operators also instead of DreamFolks, has reportedly been the decision that they came up with.
• Axis Bank and Mastercard have taken a similar decision and hence have also gone the same route
• It is most likely that other banks will soon be on the same wavelength as those in the market, according to market insiders.

What this means for DreamFolks

• Market share is suffering: DreamFolks is said to be the holder of about 90% of the Indian domestic lounge access market The change in strategy by big banks and card networks poses the same danger to this dominance as well.
• Stock fall: The price of DreamFolks shares was approximately ₹254.65 at the close, which is around 3.2% lower than today, and an almost 4% intraday decline was registered.
• Situations in the past: The stock has been feeling the pressure for quite a while now, decreasing by almost 37% in six months and 47% over the past year.

Why banks are changing course

• Confidence lost: The breakdown last September affected the service reliability very badly which in turn affected customer experience across airports and consequently, there were many complaints coming out.
• Regulation and safety: Additionally, establishing direct partnerships with lounge operators makes banks still reaping the benefits of the good partnership with the operator and at the same time they can control also the operations.

DreamFolks at a crossroads

• The company not only provides lounge access but also offers “meet & assist”, airport transit, spa access, and more
• However, the core technology of the company for the card authentication is still under investigation.
• If DreamFolks wants to stay at the pinnacle of the market, it may have to improve its IT systems, convince the clients that they are trustworthy, or diversify the partners.

What analysts and investors can watch

• Customer retention: Are banks going to keep their current policy or will they opt for a mixed model with DreamFolks?
• Financial health: Look out for the next earnings announcements, revenue trends, and cost management.
• Stock forecast: Without a clear recovery plan, the recent downward trend of the stock price may persist.

Bottom line

The DreamFolks Services share price crash is one reaction to concerns about service reliability that led ICICI, Axis, and Mastercard to secure direct airport lounge partnerships. Undoubtedly, this new course unveils how trust and operational control can rapidly change a tech-aggregator’s valuation, especially in a tight market with high dependency.