Adani, Encalm terminate airport lounge service contracts with Dreamfolks

Adani Digital, Semolina Kitchens and Encalm Hospitality have discontinued airport lounge services with industry major Dreamfolks, likely impacting company's operations and financial performance. Dreamfolks is now focusing more on global lounge business while actively repositioning towards diversified offerings.

The suspension of services by Adani Digital and Semolina Kitchens will come into effect from September 15, 2025. Encalm Hospitality will discontinue its services supply starting November 01, 2025.

"With respect to Encalm Hospitality, the Company filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 (India), seeking interim injunctions at the Honourable High Court of Delhi," the company said.


Dreamfolks assured that services are continuing uninterrupted, and contracts with clients remain active currently. It is engaging with clients to safeguard relationships and is working on other customer value propositions.

The airport lounge operator has anticipated an impact on operations and financial performance. As a response, Dreamfolks is now planning to focus on its global lounge business.

"In the event of discontinuation of airport lounge services by the above-named suppliers, the company may experience a material impact on its operations and financial performance," Dreamfolks said.

"In response to these developments, the Company has strategically accelerated its focus on global lounge business while actively repositioning towards diversified and sustainable offerings, thereby ensuring long-term value creation for clients and stakeholders," it added.

On September 4, Travel Food Services (TFSL) issued a service termination notice to Dreamfolks for airport lounges operated by the company.

We have issued a notice to terminate the extended arrangement for providing lounge access services for lounges operated by the Company, to customers of Dreamfolks Services Limited, effective from September 15, 2025, Travel Food Services said in a stock exchange filing.

The said agreement was executed on July 1, 2024, which was set to expire on March 31, 2025. The company then extended the contract to provide services to the customers of Dreamfolks.

"Despite efforts to re-negotiate the commercial terms of the agreement in good faith, we have been unable to reach a closure," it said.

Travel Food Services also informed that it has already initiated direct engagements with banks and networks to cover the impact of contract termination on the business operations.

"This strategy will enable TFSL to embark upon a new phase in the fintech evolution so as to enhance the efficiency of the services provided to its customers," it said in a statement.

Without naming the partners, the company informed that it has formed joint ventures with two of the largest multi-airport operators.

"We have formed strategic joint venture partnerships with two of the largest multi-airport operators, with whom we have had the experience of working with for many years," Varun Kapur, MD & CEO of TFSL said during the company's earnings conference call held in August.

"This structure covers lounges and QSR outlets in key locations like Mumbai, Hyderabad, Ahmedabad, Navi Mumbai, Lucknow, and Goa Mopa, amongst others," he added.

Dreamfolks Services is an aggregator that connects lounge operators with card networks and passengers. The company's troubles began with airport operators looking to directly provide lounge access to passengers across India.

The company in July said it was closing certain programmes for clients Axis Bank and ICICI Bank.

Dreamfolks CEO Liberatha Kallat is in an interview with CNBC-TV18 that the move came after "pressure tactics by two large airport operators, who have entered the same line of business." However, Kallat did not name the operators.

Shortly after, Arun Bansal, CEO of India's top private airport operator Adani Airport Holdings, said in a post on LinkedIn that India's "fintech revolution" eliminated the need for middlemen across sectors.

Major airport operators in India, including Adani Airports and GMR Airports, along with Travel Food Services are now offering their own or borrowed platforms — cutting out the middleman,

Major airport operators, including Adani Airports (which runs airports including Mumbai) and GMR Airports (which operates the Delhi airport), along with Travel Food Services (which went public a few weeks ago), are now offering their own or borrowed platforms — cutting out the middleman.

In a similar series of consequences, ICICI Bank and Axis Bank announced cessation of their ties with Dreamfolks. These two banks are two of the largest issuers of credit cards with lounge access perks.

Shares of Dreamfolks are down by almost 69% so far this year.