Shares of travel and lifestyle loyalty programmes operator Dreamfolks Services fell over 5.5 per cent on the NSE, after the company clarified in a filing that certain loyalty programmes it runs for Axis Bank and ICICI Bank had been closed with effect from July 1.

“While the Company is currently evaluating the exact potential impact of the aforesaid, it is likely to be material in nature,” it said, adding that its contracts with the banks were, however, still valid.

“Activation of new programmes, deactivation of existing programmes is part of our regular business operations,” it said. It clarified that it was committed to taking requisite actions to mitigate the impact of the closure of the programmes.

Earlier in the month it had refuted media reports that said a few clients had shifted from the company.

Contract negotiation is a part of the regular business process, which is carried on annually with the clients and its relationship with partners were strong and fully intact.

Dreamfolks, whose membership starts at an annual fee of ₹6,999 and goes up to ₹99,999, depending on the benefits, works with global companies such as Visa, Diners Club, MasterCard, Amex, as well as local banks, telecom operators and airlines.

In its exchange filing, the company said it worked with more than 50 clients and, as a practice, “we enter into MSAs (master service agreements) for five years with an annual price escalation.

In an interview with a business channel CEO and Chairperson, Liberatha Peter Kallat said the company was being subjected to pressure tactics by two large airport operators who had entered the same line of business and were forcing her company’s clients to sign up with them.

Published on July 2, 2025