India-based airport lounge services aggregator, DreamFolks Services, will be launching its initial public offering in India on August 24.
DreamFolks Services, through its asset-light business model, integrates global card players, credit card and debit card issuers with airlines and various airport lounge operators. The company also manages loyalty programmes for airlines.
Starting out as an agrregator of airport lounges, DreamFolks now calls itself “a provider of end-to-end technological solutions for building and delivering services that improve the airport experience.”
The initial public offering will open for subscription on August 24 and close on August 26.
The initial public offering is entirely an offer for sale through which the company’s promoters — Liberatha Peter Kallat, Dinesh Nagpal, and Mukesh Yadav — will offload 17 million shares, which constitutes around 33 percent of the post-offer paid-up equity share capital of the company, according to a PTI report.
With the Indian lounge market set for a massive boost, DreamFolks’ decision to go public is said to be rightly timed.
The number of airport lounges in India is expected to increase to 70-90 by 2025 and 150-160 by 2030, as per estimates based on a Frost & Sullivan research. Currently, India has around 54 airport lounges, with 31 percent of the lounges concentrated in the three key metropolitan airports of New Delhi, Chennai and Mumbai.
The total number of operational airports is expected to reach 295 by 2040 with industry revenues expected to grow to $28.6 billion by 2040.
DreamFolks can also take heart from the fact that the non-aeronautical earnings per passenger went up from around $2 in the financial year of 2017 to $4.2 in the financial year of 2021, indicating that passengers are willing to spend more.
The aviation sector has been contributing roughly 3.5 percent to India’s gross domestic product.