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Mubadala Investment Company has agreed to make a significant minority investment in Luckin Coffee alongside Centurium Capital, the Chinese coffee chain’s controlling shareholder, in a transaction valued at about $1 billion, the Abu Dhabi-based sovereign wealth fund said in a statement. The arrangement involves the transfer of preferred shares from legacy Centurium funds to a new vehicle in which Mubadala serves as a limited partner, according to a regulatory filing with the US Securities and Exchange Commission, and grants Mubadala the right to nominate one director to Luckin’s board. The deal does not entail the issuance of new shares, and Centurium’s beneficial ownership remains unchanged while the transaction stays subject to customary closing conditions. Mubadala manages a global portfolio of $385 billion across six continents and various asset classes.
Luckin Coffee operated more than 36,000 stores globally as of June 30, 2026, with its cumulative number of transacting customers approaching 500 million, Mubadala’s statement indicated. The company has built its platform around a technology-driven retail model that integrates data across customer engagement, product development and store operations while maintaining an extensive physical footprint and efficient supply chain. Founded in 2017, Luckin expanded quickly in the Chinese market before facing challenges that included an accounting scandal in 2020, after which it restructured and returned to growth.
Mohamed Albadr, head of Asia, private equity at Mubadala, said in the statement that the fund continues to see compelling long-term opportunities in China’s consumer sector. He noted that Luckin Coffee has created a differentiated business enabling rapid responses to evolving consumer preferences through its combination of scale, digital capabilities and product innovation. “Building on our longstanding partnership with Centurium, we look forward to working alongside Luckin Coffee’s management team to support the Company’s next phase of growth in China and internationally,” Albadr stated.
Michael Chen, partner at Centurium Capital, welcomed Mubadala’s involvement and said the sovereign investor’s sector knowledge, global perspective and network will support Luckin Coffee’s continued innovation and long-term development, according to the joint announcement. The investment deepens Mubadala’s presence in China’s consumer market at a time when demand for freshly brewed coffee has risen steadily among both new and existing drinkers. Luckin has reported solid revenue increases in recent quarters, including 28.5 percent year-on-year growth in the second quarter of 2026 to 15.886 billion yuan.
The transaction reflects Mubadala’s ongoing efforts to identify high-potential opportunities in Asia while backing companies with strong operational models and expansion plans, the sovereign investor’s release showed. Luckin aims to sustain its domestic leadership while pursuing international growth, building on its recovery and store network that now spans multiple countries. As part of the arrangement, the partnership will focus on enhancing the company’s technology integration and market responsiveness in a competitive sector.
