Mubadala to acquire stake in China’s Luckin Coffee in $1bn deal
Abu Dhabi sovereign investor Mubadala Investment Company plans to acquire a significant minority stake in Chinese coffee chain Luckin Coffee in a deal valued at approximately $1 billion. The investment will be made together with Centurium Capital, the company’s controlling shareholder.
As The National reports, the parties did not disclose the size of Mubadala’s investment, the size of the stake it will receive, or Luckin Coffee’s valuation implied by the agreement. Completion of the transaction is subject to customary closing conditions.
Bet on China’s consumer sector
Mubadala said it sees long-term opportunities in China’s consumer sector amid growing demand for freshly brewed coffee. Mohamed Albadr, head of private equity in Asia, said Luckin Coffee uses a technology-driven retail model based on digital customer engagement, data and rapid product updates.
Centurium Capital partner Michael Chen said Mubadala’s industry expertise, international experience and network of contacts will help Luckin Coffee continue growing and introducing innovations.
More current news is available on the UA.News Telegram channel Telegram.
Luckin Coffee’s scale
Founded in 2017 in the city of Xiamen, Luckin Coffee has become one of China’s largest coffee chains. As of June 30, the company operated more than 36,000 outlets worldwide, while the total number of its customers who made purchases was approaching 500 million.
The company is also expanding outside China, including in Singapore, Malaysia and the United States. According to Grand View Research, revenue in China’s coffee market could reach $5.36 billion by 2033, while its compound annual growth rate for 2026–2033 is forecast at 6.4%.
Mubadala’s portfolio is estimated at $385 billion. The fund has been present in China since 2015 and is expanding investments in the country’s consumer and technology sectors.
