Mubadala Investment Company, Abu Dhabi's sovereign wealth fund, has announced a significant minority investment in Luckin Coffee Inc., China's largest coffee chain. The investment, totaling approximately $1 billion, is being made alongside Centurium Capital, Luckin Coffee's controlling shareholder. This move positions Mubadala as an indirect investor, granting it the right to appoint one director to Luckin Coffee's board. The transaction is still subject to customary closing conditions.
The investment is structured as an acquisition of 241.095 million preferred shares from two older funds under Centurium by a new fund vehicle where Mubadala is a significant limited partner. This is not a new equity financing issued by Luckin Coffee, meaning Centurium's beneficial ownership remains unchanged. The implied price per share for this transaction is approximately $4.15, which translates to about $33.18 per American Depositary Share (ADS), closely aligning with market prices in early September.
Mubadala's decision to invest reflects its continued optimism about long-term opportunities in China's consumer sector. Mohamed Albadr, Head of Asia, Private Equity at Mubadala, highlighted Luckin Coffee's technology-enabled business model, digital capabilities across customer engagement, product development, and store operations, and its rapid product innovation. Mubadala plans to leverage its existing partnership with Centurium to support Luckin Coffee's further growth within China and internationally. Centurium Capital, which holds about 23.1% equity interest and 47.8% voting rights in Luckin, welcomed Mubadala's sector knowledge and global network.
Luckin Coffee, founded in 2017, has rapidly expanded its footprint, operating over 36,000 stores globally as of June 30, 2026. This includes 23,734 self-operated stores and 12,576 partnership stores. The company's cumulative transacting customers are approaching 500 million, with monthly active transacting customers reaching 112.7 million in the second quarter of 2026. Luckin Coffee reported total net revenues of $7.0 billion in fiscal year 2025, a 43% year-over-year increase, with net income rising 21.8% to $513.9 million.
