Abu Dhabi sovereign wealth fund Mubadala Investment Company has finalised an approximate $1 billion strategic minority investment in Chinese beverage firm Luckin Coffee alongside controlling shareholder Centurium Capital, according to 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 oversees approximately $385 billion in sovereign assets, has steadily expanded its footprint in Chinese retail and consumer markets. The fund's prior capital commitments in China include investments in cross-border e-commerce platform SHEIN and acquisitions of core operations from UCB Pharma. The Luckin transaction represents one of the largest single direct deployments of Gulf sovereign wealth into China's consumer food and beverage industry.
Luckin Coffee posted total net revenue of CNY 49.288 billion (approximately $7.3 billion) in 2025, operating a network of 36,310 stores across China, a footprint more than four times larger than Starbucks' presence in the country. However, the report noted that the company has experienced consecutive quarterly declines in same-store sales, facing intensifying competition from domestic tea beverage brands as the market moves beyond price competition toward existing share retention.
BigGo Finance reported market speculation indicating the transaction could support Luckin Coffee in acquiring premium coffee brands or pursuing plans to relist on a major US stock exchange. Institutional analysts project an estimated price-to-earnings ratio of 18 to 22 times if such a relisting occurs.
Sources
- UECN · 2026-09-26
