Management Message
Message from the Chairperson and Managing Director
Liberatha Peter Kallat
Chairperson and Managing Director
Dear Shareholders,
As we continu? to work towards DreamFolks' mission, we aim to offer everyone
high-quality travel and lifestyle experiences and become a preferred service provider.
This year, we continued to expand our service offerings by leveraging our advanced
technology and valuable client relationships.
We are strengthening our leadership in airport services and increasing our brand
recognition through strategic global partnerships. This strategy reinforces our commitment
to expanding the range and accessibility of our services, ensuring that DreamFolks remains
at the forefront of innovation in the travel industry.
World, India, and Aviation Industry
In FY2023-24, the global economy displayed robust growth, marked by a significant 3.2%
expansi?n, reflecting resilience and adaptability in economic practices worldwide. India
particularly shone, with its GDP touching 8.2% p.a., significantly outperforming
predictions and setting a positive economic narrative that continued into the aviation
sector. The sector rebounded impressively, with passenger traffic surging by 36.9%
year-over-year, catapulting beyond pre-pandemic levels. The aviation industry is expected
to continue its growth momentum, supported by rising global travel interest, increased
aircraft deliveries, and the growing demand for luxury travel experiences.
This upward trend is supported by substantial investments in aviation infrastructure,
particularly in the Asia Pacific region, which is poised to become the fastest-growing
aviation market globally. With India's domestic air passenger traffic surging by 13% to
153.7 million in FY2024, the nation is on track to secure its position as the world's
third-largest aviation market by 2025, driven by increased leisure and business travel.
This trajectory is a testament to the industry's resilience and underscores the strategic
insights that continue to propel DreamFolks forward in these thriving times. Furthermore,
the expanding lounge areas, up by 7,000 square meters in FY2024 alone, highlight the
lucrative potential of this niche within the broader aviation industry.
Credit card industry in India has witnessed significant growth
The credit card industry in India has witnessed significant growth and evolution in
recent years, fueled by increasing consumer spending, digitalization, and expanding
financial inclusion initiatives.
Data from RBI indicates that the number of credit cards in circulation as on the end of
last financial year has increased by 19% YoY to reach 101.8 million cards outstanding.
Another metric showcasing the increasing adoption of credit cards, is the noticeable
increase in the average spend per credit card during the year, to about INR 1.80 lakh in
FY2024, from INR 1.68 lakh in FY2023, an increase of about 7% YoY.
Both these facts clearly signal the leading adoption of credit cards in the country,
which would certainly provide us with the necessary tailwinds to ensure a sustained growth
in the business.
At DreamFolks, we are committed to redefining the travel and lifestyle sector and being
a one-stop solution for all lifestyle Services, by diversifying our service portfolio and
strengthening our global presence.
Diverse Dimensions, Superior Experiences
We emphasize our commitment to expanding and enriching the travel and lifestyle
Services we offer at DreamFolks. This theme reflects our strategic approach to integrating
a wider range of Services, catering to our global clientele's varied needs and
aspirations. Our focus remains on aggregation and integration of new services to our
portfolio and ensuring unparalleled quality across all interactions, ensuring that every
experience with DreamFolks meets and exceeds the expectations of those we serve. We have
added various services throughout the year like providing access to luxury services, car
rental services, salon services, and many more.
In addition to integrating new contemporary services, we have broadened our aggregation
efforts in lounge services as well, and are now facilitating access of lounges not only at
the airport but also at the railway stations, highways, and visa application centres for
which we have tied up with Visa Services, the largest visa outsourcing service provider
globally.
As we look to the future, DreamFolks is poised to seize the vast opportunities ahead.
Our strategy is clear: to continue expanding our global footprint, diversifying our
service offerings and the categories of clients, reaching new markets, and enhancing our
clients' travel and lifestyle experiences.
Financial Performance
In FY2024, DreamFolks achieved remarkable financial growth, with revenue increasing to
INR 11,350 million, a 47% rise from INR 7,733 million in FY2023, significantly outpacing
the domestic air traffic growth of 13%. This year's performance underscores our leadership
in the lounge services aggregation industry, with a revenue CAGR of 100% from FY2022 to
FY2024. We facilitated approximately 11 million passengers in FY2024 which was 3.5 million
in FY2022, leveraging digital advancements like web access and self-check-in kiosks, which
now accounts for ~10% of our monthly passenger interactions. Our gross margins remained
within guidance at 12.1%, and our adjusted EBITDA reached INR 1,033 million, with a margin
of 9.1%. Additionally, revenues from services beyond Indian airport lounges grew to 6%,
from less than 2% in FY2022, owing to our focus on diversifying our business model, with a
strategic vision to expand these contributions to 15-20% over the next 4-5 years.
Strategic Achievements
At DreamFolks, we are committed to redefining the travel and lifestyle sector and being
a one-stop solution for all lifestyle services, by diversifying our service portfolio and
strengthening our global presence. We forged important alliances with RedBeryl and Eco
Mobility, broadening our luxury lifestyle services and introducing luxury car rentals
for the end consumers. Further enriching our offerings, we entered the beauty and grooming
space through a new partnership with Looks Salon, and others like Matrix for E-sim
and MyFlowerTree for gifting services.
Our strategic expansion continued by integrating over 340 Plaza Premium lounges
across more than 70 major airports worldwide, enhancing our network's global reach. Our
entry into the Malaysian market was a significant development, leveraging our
proprietary technology to manage lounge benefits effectively. These efforts are
complemented by our expansions into high-growth regions in CEMEA (Central Europe,
Middle East & Africa) and Southeast Asia, fueled by our robust technological
framework and solid client relationships.
Our new go-to-market strategy involves partnerships with OTAs, airlines, and
enterprises. This strategic pivot is designed to broaden our market reach and increase the
brand equity of DreamFolks among different set of clients.
These initiatives would allow us to scale operations, improve profit margins, and
capture growth opportunities presented by increasing travel demand, the rising adoption of
digital payments, and a growing preference for premium services. DreamFolks is poised to
maintain its leadership and deliver build up value to travelers worldwide by continuously
innovating and adapting to the industry's dynamic needs.
Technology and Innovation
Our technology platform is crucial to operational success, enhancing service and
ensuring efficient delivery. Developed in-house, the proprietary platform is the backbone
of our bespoke product offerings, enabling tailored solutions that cater uniquely to
client needs. Our asset-light, cloud-based infrastructure ensures that clients and
consumers have transparent access to services and benefits, facilitated by a robust
omnichannel approach—including mobile apps, self-check-in kiosks, and web portals.
This technology improves customer engagement through specific value propositions and
reduces our clients' total cost of ownership. Our ongoing investment in technology
innovation ensures DreamFolks remains a leader in the travel and lifestyle sectors.
Sustainability and Community Engagement
DreamFolks is committed to integrating sustainability and community engagement into its
core business practices, focusing on societal and environmental benefits. For over a
decade, initiatives such as Project AKSHAR have driven educational support by improving
infrastructure in underprivileged schools. In the fiscal year 2023-2024, efforts were
particularly directed towards enhancing educational facilities for girls in Haryana,
supporting our goals of female empowerment and community upliftment, and reinforcing our
impact on sustainable development.
Future Outlook and Closing Remarks
As we look to the future, DreamFolks is poised to seize the vast opportunities ahead.
Our strategy is clear: to continue expanding our global footprint, diversifying our
service offerings and the categories of clients, reaching new markets, and enhancing our
clients' travel and lifestyle experiences. We are committed to harnessing cutting-edge
technology and innovation to stay at the forefront of the industry, ensuring that we meet
but exceed the expectations of our clients and shareholders. Positive industry tailwinds,
such as increase in demand for travel, rising adoption of credit cards and digital payment
solutions and growing demand for premium services such as lounges and other lifestyle
services present significant growth prospects in the foreseeable future. Thank you for
your continued trust and support as we journey into another promising year with a vision
to make every travel experience memorable and accessible to all.