India’s Dreamfolks said on Friday that three of its customers, including the country’s third-largest lounge operator, Encalm Hospitality, would end their contracts with the airport lounge access provider.
Adani Digital and Semolina Kitchens will also terminate their contracts, Dreamfolks said in an exchange filing.
The discontinuation of the contracts would have a material impact on Dreamfolks’ financial operations, it said, without giving further details.
Dreamfolks is an aggregator that connects lounge operators with card networks and passengers, while its troubles began with airport operators looking to directly provide lounge access.
The company in July said it was closing certain programmes for clients Axis Bank and ICICI Bank.
Dreamfolks CEO Liberatha Kallat told news broadcaster CNBC-TV18 that the move came after “pressure tactics by two large airport operators, who have entered the same line of business.” 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.
Dreamfolks has expanded to international markets in response to the recent developments, it said in the filing.
Its shares are down 64% so far this year.
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