New Delhi: Dreamfolks Services Ltd, India’s pioneering airport services aggregator, has announced the acquisition of a 50.01% stake in Ten11 Hospitality LLP for ₹11.46 crore, the company said in a press release to the bourses.
The move comes at a time when the airport lounge aggregator, which once dominated the market in India, now looks to diversify even as banks and airport operators like Adani and leading credit card issuing banks look to collaborate directly without involving middlemen like Dreamfolks.
The company, which once controlled almost 9 of the 10 lounges in the country in 2024, has been forced to exit the domestic lounge business especially since most of the contracts it depended on were not renewed.
This acquisition is aimed to help the company reclaim its lost ground, especially as multiple entities and airport operators like Adani now put Dreamfolk’s business model under threat.
Ten11 Hospitality LLP currently operates travel lounges at Mumbai Central, Chennai and Vadodara stations, and Dreamfolks seems to have got an opportunity to expand to a larger audience through this acquisition.
This comes at a time when Dreamfolks has been steadily diversifying its portfolio, to include spas, wellness and managing lounges overseas.
The company’s business model has been quite fragile, with EBITDA margins just under 10% and revenue growth slowing to under 9%. This has been a smart move for the company looking to expand its presence in the fast-growing travel market. Given that Dreamfolk’s shares have fallen more than 69% in a year, this offers its investors a ray of hope.
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