Dreamfolks Services Takes 34% Stake in ETT Solutions, Eyes Global Expansion

Dreamfolks Services Ltd. has successfully acquired an initial 34% stake in ETT Solutions DMCC via a secondary share purchase. This marks the completion of the first phase of its acquisition strategy.

The company plans to increase its total ownership to 60.24% after completing a subsequent primary subscription for fresh shares.

Key Acquisition Milestone Achieved

DreamFolks Services Limited announced the completion of the initial phase of its investment in ETT Solutions DMCC. This phase involved purchasing existing shares, resulting in DreamFolks holding a 34% stake in the Dubai-based company.

The next step involves a primary subscription to new shares, which DreamFolks anticipates will proceed as planned. Upon the successful conclusion of this second phase, DreamFolks expects its shareholding in ETT to reach 60.24%.

Strategic Move for Global Footprint

This acquisition is a significant step in DreamFolks' broader strategy to expand its international presence and diversify its service offerings. Acquiring ETT Solutions is crucial for tapping into international travel service markets and strengthening DreamFolks' technology-led platform.

The company's board had previously approved investing in ETT Solutions DMCC on December 1, 2025, with a planned total investment of approximately ₹36 crore to achieve the 60.24% stake. ETT Solutions will become a foreign subsidiary upon full completion.

Pivoting Towards Global Operations

This acquisition is particularly important given DreamFolks' recent strategic shift. In September 2025, the company discontinued its domestic airport lounge services due to contract terminations and competitive pressures from airport operators. This led to a substantial decline in its stock value.

The ETT acquisition is therefore vital for DreamFolks' pivot towards global operations and the development of new business streams to compensate for the loss of its core domestic business.

Looking Ahead: Integration and Next Steps

With the initial phase complete, DreamFolks moves closer to consolidating its international presence through ETT Solutions. Shareholders can anticipate further updates regarding the primary subscription phase, which is essential for achieving the target ownership.

The successful integration of ETT is expected to support DreamFolks' diversification into global travel services and technology platforms.

Potential Risks

Key risks for investors to monitor include the successful completion of the primary subscription phase for ETT's new shares within the agreed timelines. Any delays or unforeseen issues in concluding the full acquisition could impact investor sentiment.

Competitive Landscape

Dreamfolks' strategic pivot places it in a dynamic global travel services market. Competitors in related areas include established players like Thomas Cook (India) Ltd., online travel aggregators such as Easy Trip Planners Ltd., and Yatra Online Ltd. DreamFolks' focus on airport service aggregation and international expansion via ETT offers a distinct strategy within this competitive space.

Recent Financial Performance

For the quarter ended December 31, 2025, Dreamfolks Services reported consolidated revenue from operations of INR 534.50 million, an 84.27% decrease year-on-year. The company also swung to an EBITDA loss of INR 84.74 million from a profit of INR 248.98 million in the same period last year.

Key Trackers for Investors

Investors will be watching for:

• Completion of the primary subscription phase for ETT Solutions DMCC.
• The timeline for finalizing the acquisition and ETT becoming a full subsidiary.
• Updates on ETT's integration and its contribution to DreamFolks' global strategy and financial performance.