Abu Dhabi sovereign wealth fund Mubadala Investment Company, alongside controlling shareholder Centurium Capital, has finalized an approximate $1 billion strategic minority investment in Chinese beverage company Luckin Coffee. According to reports cited from BigGo Finance, the transaction was structured as a secondary share transfer from existing shareholders, meaning the proceeds did not alter Luckin Coffee's balance sheet.
Mubadala, which manages roughly $385 billion in sovereign assets, continues to broaden its investments in Chinese consumer markets. The fund has previously deployed capital into cross-border e-commerce platform SHEIN and acquired core operations from UCB Pharma. The Luckin deal represents one of the largest single direct deployments of Gulf sovereign capital into China's consumer food and beverage industry.
In 2025, Luckin Coffee generated total net revenue of CNY 49.288 billion (approximately $7.3 billion) while operating a network of 36,310 stores across China, which is more than four times Starbucks' store count in the country. The company previously delisted in 2020 following accounting fraud.
Despite network growth, reports note that Luckin Coffee has recorded consecutive quarterly declines in same-store sales amid rising competition from domestic tea beverage brands. Market speculation cited by BigGo Finance indicates the transaction may support Luckin in acquiring premium coffee brands or pursuing plans to relist on a major US stock exchange.
Sources
- UECN · 2026-09-26
