About the Company:
Dreamfolks Services Ltd is a dominant player and India’s largest airport service aggregator platform facilitating an enhanced airportexperience to passengers leveraging a technology driven platform.
Company’s asset-light business model integrates global card networks operating in India (Card Networks), credit card and debit card issuers (Card Issuers) and other corporate clients, in India, including airline companies with various airport lounge operators and other airport related service providers on a unified technology platform.
Company facilitate customers of Clients’ (Consumers) access to the following airport related services (i) lounges, (ii) food and beverage (iii) spa, (iv) meet and assist, (v), airport transfer (vi) transit hotels /nap room access, and (vii) baggage transfer, (collectively, the Services).
Company’s dominance is underpinned by facilitating access to 100% of the 54 lounges currently operational in India.
Company also enjoyed a market share of over 95% of all India issued credit card and debit card (Card Based) access to airport lounges in Fiscal 2022.
Additionally, in Fiscal 2022 company also accounted for around 68% of the overall lounge access volume in India.
First Mover Advantage:
Company’s first mover advantage in the lounge access aggregator industry in India has enabled Dreamfolks Services Ltd to become a dominant player in the industry with a share of over 80% in the domestic lounge access market in India.
Company’s Clients:
Company’s Client portfolio also includes prominent airlines, a telecommunication company, an online travel agency (OTA) and other corporates in India who generally make available these services to customers of their choice.
Company’s History:
Company began operations in 2013 by facilitating lounge access services for the Consumers of Mastercard and, currently, provide services to all the Card Networks operating in India including Visa, Mastercard, Diners/Discover and RuPay.
Company also provide services to many of India’s prominent Card Issuers including ICICI Bank, Axis Bank, Kotak Mahindra Bank, HDFC Bank (in respect of debit card lounge program) and SBI Cards and Payment Services Ltd.
Over the years, company has transformed itself from being an airport lounge access aggregator to an end-toend technology solutions provider for designing and delivering services that enhance the airport experience.
Services provided by the company:
Key Performance Indicators: (in millions)
Description of Company’s services is given below:
Lounge Access:
- Company has 100% coverage of operational lounges in Indian airports, and offer a unique value proposition to our Clients by enabling access to the Consumers to a network of all operational airport lounges in India.
- Consumers have access to lounges including in Bengaluru, Chennai, Mumbai and New Delhi operated by various entities.
Food and Beverage offerings:
- Company has tied up with various entities to facilitate access to around 57 restaurants / F&B outlets at 18 airports across India, as at March 31, 2022.
- At these restaurants / F&B outlets, Consumers can select from the curated ‘DreamFolks’ menu a variety of vegetarian and non-vegetarian food and beverage combinations (‘combo’ offerings).
Airport transfer services:
- Company facilitated airport transfer, i.e., airport ‘pick-up and drop’ facilities in 47 cities across India and in 145 cities outside India, as at March 31, 2022.
Transit Hotels / Nap Room Access:
- In Mumbai and New Delhi, through tie up with Niranta Airport Transit Hotel & Lounge (a unit of International Airport Hotels & Resorts Private Limited) and Holiday Inn Express New Delhi International Airport T-3 (a unit of Devaryaa Hospitalities Private Limited), we facilitate access to hotel rooms.
- Further, in Bengaluru, Cochin and Mumbai, company facilitate access to ‘nap rooms’ or ‘sleeping pods’, i.e., specialised facilities which allow passengers, particularly transit passengers, access to private rooms / compartmentalised sleeping quarters, with rest-room access.
Baggage Transfer:
- Company has tied up with a service provider to provide baggage pick-up and drop-off facility to and from airports across Bengaluru, Hyderabad, Mumbai, and New Delhi.
Other Services:
- In addition to providing Services at airports, company have also, in the current Fiscal, forayed into the railways sector and have entered into contracts to provide lounge access at 8 railway stations in India.
Key performance indicators (Touch Points covered)
Management Team:
- Liberatha Peter Kallat (Designation: Chairperson and Managing Director)
- Mr. Mukesh Yadav (Designation: Non-Executive Director)
Objectives of the Issue:
Offer for Sale: (Rs.562 cr)
- Each of the Selling Shareholders will be entitled to the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.
Peer Group Comparison:
- There are no listed peer companies in India. Hence we cannot make any comparison.
Competitors in the Business:
Company is a dominant player and India’s largest airport service aggregator platform facilitating an enhanced airport experience to passengers leveraging a technology driven platform. Company faces significant competition from international operators including Priority Pass and Dragon Pass.
In the international market, company is a recent entrants and have to contend with significantly larger operators such as Priority Pass and Dragon Pass.
Positives for the Company:
Dominant player in the airport lounge aggregation industry in India with strong tailwinds.
- Company is the largest and dominant airport lounge access provider in India. In Fiscal 2020, of the total Indian domestic lounge access, around 80% was through India issued credit cards and debit cards.
- Moreover, company has coverage across 54 operational airport lounges constituting 100% of airport lounges in India, as at March 31, 2022.
Financials of the Company:
| (in Crores) | FY 20 | FY 21 | FY 22 |
|---|---|---|---|
| Revenue | 367.8 | 108.1 | 283.9 |
| Net Profit | 31.6 | (-1.4) | 16.2 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 24th August 2022 |
| Issue Closes on:. | 26th August 2022 |
| Issue Price | Rs.308 – 326 |
| Face Value | Rs.10 |
| Retail Category Allocation | 10% |
| Minimum Lot | 46 Shares |
| Minimum Investment | Rs.14,996 |
| Issue Constitutes | 32.99% |
| Issue Size | Rs.562 cr ($ 75 million) |
| Market Cap | Rs.1703 cr ($ 230 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered | 1,72,42,368 |
| Equity Shares Prior to the Issue | 5,22,50,000 |
| Equity Shares after the issue | 5,22,50,000 |
Also Read : List of Upcoming IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 1st September 2022 |
| Initiation of Refunds | on or Before 2nd September 2022 |
| Credit of Equity Shares: | on or Before 5th September 2022 |
| Listing Date: | on or Before 6th September 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.98 | 82 | 19.78% | 15.73 |
| Check IPO Allotment Status: |
|---|
Link InTime Website: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Dreamfolks Services Ltd 501, Tower 2, Fifth Floor, Worldmark, Sector-65, Gurugram – 122 018, Haryana, India. Telephone: +91 0124 4037 306 E-mail: rangoli@dreamfolks.in Website: www.dreamfolks.in |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai 400 083 Tel: +91 22 4918 6200 E-mail: dreamfolks.ipo@linkintime.co.in Website: www.linkintime.co.in |
