Mubadala Investment Co., an Abu Dhabi-based global investor, has made a significant minority investment in Luckin Coffee Inc., China's largest coffee chain. The transaction, valued at approximately $1 billion, sees Mubadala becoming an indirect investor in Luckin through a deal with its controlling shareholder, Centurium Capital.
This investment is not a new equity financing issued by Luckin Coffee. Instead, it involves Mubadala, acting as a significant limited partner in a new fund vehicle, acquiring 241.095 million preferred shares of Luckin from two older funds under Centurium. This arrangement means Centurium's beneficial ownership in Luckin Coffee remains unchanged. The implied price per share from this transaction is about $4.15, translating to approximately $33.18 per ADS (American Depositary Share), which is close to Luckin's market prices in early September.
Mubadala will gain the right to appoint one director to Luckin's board, reflecting its strategic involvement. The investment highlights Mubadala's continued optimism about China's long-term opportunities in the consumer sector, viewing Luckin's technology-driven model and rapid growth as key assets. As of June 30, 2026, Luckin Coffee operated over 36,000 stores globally and had nearly 500 million cumulative transacting customers.
Centurium Capital, which held about a 23.1% equity interest and 47.8% voting rights in Luckin as of February 28, 2026, welcomed Mubadala, citing its sector knowledge and global network as beneficial for Luckin's future growth. This collaboration is expected to support Luckin's expansion both within China and internationally, potentially impacting its progress toward a main board relisting and further overseas market penetration, including the Middle East.
Luckin Coffee has experienced rapid expansion, with its global store count exceeding 31,000 by year-end, including more than 20,000 self-operated outlets in China. In the second quarter of 2026, the company reported total net revenue of 15.886 billion yuan, a 28.5% year-on-year increase, and monthly active transacting customers reached 112.7 million. While the Chinese coffee market remains competitive, Luckin's strategic moves, such as Centurium's acquisition of Blue Bottle Coffee's cafe operations, indicate an intent to diversify its market presence, potentially targeting the premium segment.
