Mubadala to Take Minority Stake in Luckin Coffee in $1 Billion Deal
Abu Dhabi's Mubadala agrees to a minority investment in Luckin Coffee valued at about $1 billion, joining the chain's controlling shareholder Centurium Capital.
Tariq Benali Tariq Benali covers business and corporate news across the UAE and MENA for Anecdoted, tracking the deals, leadership moves and regulatory shifts behind the region's companies. tariq@anecdoted.com
Abu Dhabi sovereign investor Mubadala Investment Company has agreed to acquire a significant minority stake in China-based Luckin Coffee, in a transaction valued at approximately $1 billion. The statement announcing the deal was released Thursday.
The investment places Mubadala alongside Centurium Capital, the private equity firm that controls Luckin. Centurium manages $7 billion in assets and holds investments in sectors including technology and healthcare.
Mubadala said the investment reflects its view of the long-term growth potential of China's consumer sector, as the country's coffee market expands and consumers increasingly adopt freshly brewed coffee.
Mohamed Albadr, head of Asia for private equity at Mubadala, said the firm continues to see compelling long-term opportunities in China's consumer sector. He pointed to a longstanding partnership with Centurium and said Mubadala expects to work alongside Luckin's management team as the company enters its next phase of expansion in China and abroad.
Mubadala oversees a $385 billion portfolio spread across six continents and spanning multiple sectors and asset classes.
A mobile-first retail model
Luckin was founded in 2017 and built its retail operation around technology. Customers order through mobile devices, and the purchasing process runs without cashiers. The company links its physical store network to digital customer engagement, product development and an integrated supply chain.
As of June 30, 2026, Luckin operated more than 36,000 stores worldwide. The cumulative number of transacting customers was approaching 500 million.
Albadr described Luckin as a differentiated, technology-enabled business, with data embedded across customer engagement, product development and store operations.
Second-quarter results
Luckin reported $2.3 billion in net revenue for the second quarter of 2026, a rise of 28.5% from a year earlier. Net profit increased 16.1% to $218.7 million.
The chain added a net 2,714 stores during the quarter. China, including Hong Kong, accounted for 2,668 of those openings. Seven were added in Singapore, 31 in Malaysia and eight in the US, as Luckin kept expanding both at home and in international markets.
