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Mubadala Investment Company has entered a transaction to become an indirect stakeholder in Luckin Coffee by acquiring preferred shares from funds affiliated with Centurium Capital, according to a statement from the Abu Dhabi sovereign wealth fund. The deal valued at roughly $1 billion grants Mubadala the right to appoint one director to the coffee chain’s board and reflects a strategic minority position rather than a new share issuance. Centurium Capital’s ownership stake remains unchanged following the transfer, which is subject to customary closing conditions.
A Bloomberg report placed the transaction value at approximately $1 billion and noted that the implied price aligns closely with Luckin’s prevailing market levels in early September. Mubadala’s move forms part of a longer-term plan to raise its Asia portfolio weighting from 13 percent to 25 percent over the next five to 10 years with emphasis on consumer sectors. Mohamed Albadr, Mubadala’s head of Asia, said the fund continues to see long-term investment opportunities in China’s consumer sector and looks forward to working with Luckin’s management and Centurium Capital.
Luckin Coffee ran more than 36,000 stores worldwide as of June 30, 2026, according to company figures, and posted second-quarter net revenue of 15.9 billion yuan, up 28.5 percent year on year. The chain’s monthly transacting customers averaged 112.7 million during the period, an increase of 22.9 percent, while cumulative customers approached 500 million. Luckin has rebuilt its business model around digital operations, rapid product innovation and scale advantages since its founding in 2017.
China’s coffee market expanded to 354.9 billion yuan in 2025 with annual growth of 13.3 percent and per capita consumption reaching 28.57 cups, Statista data shows. Luckin commands an 11 percent share of the domestic market, outstripping Starbucks at approximately 4.2 percent amid fierce competition from local operators that has pushed the nationwide store count above 227,000. The sector continues to benefit from urban consumer preferences for convenient, technology-enabled coffee experiences.
Centurium Capital, which retains its position as Luckin’s largest shareholder, welcomed Mubadala’s involvement citing the sovereign fund’s global resources and industry expertise. The transaction structure included bank financing secured against the transferred shares in a dedicated vehicle where Mubadala serves as a key limited partner. Luckin, which has recovered from a 2020 accounting scandal, is exploring a return to a major stock exchange listing.
The investment counts among the larger recent commitments by Middle Eastern sovereign funds to China’s consumer space and underscores growing cross-regional interest in established domestic brands. Mubadala manages more than $385 billion in assets spanning diverse sectors and geographies. The partnership is expected to support Luckin’s domestic growth and potential international expansion through combined networks and capabilities.
