Interview with Liberatha Kallat, Founder and MD of DreamFolks Services Ltd

Our company is well-equipped with advanced technology and infrastructure aimed at elevating the customer experience and expanding our range of lifestyle services., voices Liberatha Kallat, Founder and MD of DreamFolks Services Ltd

What key factors led the company to achieve its highest-ever quarterly revenue, reflecting a significant 20 per cent year-on-year growth, along with a 32 per cent surge in net profit?
Several key factors contributed to our achievement of the highest-ever quarterly revenue of Rs 320 crore, marking a notable 20 per cent year-on-year growth, along with a 32 per cent increase in net profit.

First, there has been a growing demand for travel and lifestyle services, driven by the increasing consumer interest in these sectors. Additionally, Positive industry tailwinds, coupled with a 17 per cent year-on-year increase in Credit Cards in circulation, have created a favourable environment for growth. The acquisition of new clients has further bolstered our revenue, while the strong traction in our new services has also played a critical role in this success.

Moreover, our focus on enhancing operational efficiency has significantly contributed to the impressive surge in net profit, ensuring that our growth is not just top-line but also bottom-line driven.

Could you provide insights into the onboarding of new enterprise clients like Evolve Brands and Signature Journeys, as well as the addition of new airport lounges and products?
As part of DreamFolks’ strategic expansion, we are actively onboarding prominent enterprise clients such as Evolve Brands and Signature Journeys, both of which are influential players in loyalty solutions, high-end travel, and lifestyle memberships. These partnerships align with our vision to cater to the evolving needs of our clientele.

Additionally, the growing tourism industry, coupled with the increasing penetration of credit cards, has driven the demand for newer and larger airport lounges, as well as new services. We are responding to this demand by introducing a variety of new offerings, including Golf, Meet & Assist services, Airport Transfers, E-Sim capabilities, and Beauty & Grooming services, as well as curated gifting options. These additions are designed to enhance the overall travel & lifestyle experience and meet the expectations of our sophisticated clientele.

Are there any plans for capital expenditure in the near future?
We operate under an asset-light business model, with our primary significant investment being the development and enhancement of our technology platform. We are committed to regularly investing in the research and development of our tech capabilities to ensure we remain at the forefront of innovation.

While our current focus is on optimising our tech infrastructure, as we plan to expand our operations beyond India, there may be a need for some capital expenditure in establishing the necessary tech infrastructure for these new markets. This will ensure that our global expansion is supported by robust and scalable technology, enabling us to maintain our high standards of service across regions.

What are the top three strategic priorities currently being focused by the company?
Our top three strategic priorities are designed to build on our current success and drive future growth. First, we have achieved 100 per cent coverage across all airport and railway lounges in India, along with over 90 per cent market share in card-based lounge access. We aim to replicate this success internationally, with a particular focus on Southeast Asia. To support this expansion, we have incorporated an entity in Singapore as part of our broader strategy to establish a strong presence in the SEA region.

Second, diversification is another key focus area. We are actively working on onboarding more enterprise clients, which will allow us to broaden our portfolio and tap into new revenue streams.

Finally, the continuous addition of travel and lifestyle services remains a critical priority. We are committed to enhancing our service offerings to meet the evolving needs of our customers, ensuring we stay ahead in a competitive market.

What do you foresee for India's airport services and business support industry? How might budget efforts to double airports and improve air connectivity spur sector growth?

India's airport services and business support industry is poised for significant growth, driven by the unprecedented surge in demand for both business and leisure travel. This surge is further bolstered by the government's budgetary efforts to double the number of airports and enhance air connectivity across the country. These initiatives are expected to accelerate the growth of the travel and tourism industry, creating new opportunities for service providers.

According to Mordor Intelligence, the Indian aviation market size is projected to grow from USD 13.9 billion in CY2024 to USD 26.1 billion by CY2030F, reflecting a compound annual growth rate (CAGR) of 11.1 per cent p.a. during this period. In FY2024 alone, we witnessed a notable expansion of lounge areas by 7,000 square meters across all airports. This robust growth forecast underscores the immense potential within the industry, and we are strategically positioned to be at the forefront of this expansion.

To capitalise on this growth, our company is well-equipped with advanced technology and infrastructure aimed at elevating the customer experience and expanding our range of lifestyle services.