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Abu Dhabi Sovereign Wealth Fund Mubadala Invests $1 Billion in Luckin Coffee
Consumer Services · Restaurants · yonhap_finance · 2026-09-10
UAE's Mubadala Investment Company has announced a $1 billion strategic investment in Chinese coffee chain giant Luckin Coffee to fuel further expansion.
What Happened
Strategic Investment: The Abu Dhabi-based sovereign wealth fund, Mubadala Investment Company, has finalized a strategic investment of approximately $1 billion into Luckin Coffee. The deal is being executed in partnership with Centurium Capital, the private equity firm that serves as Luckin's controlling shareholder.
Investment Rationale: Mubadala cited the rapid growth of China's coffee market and the increasing frequency of coffee consumption as key drivers for the deal. The fund specifically praised Luckin's tech-driven business model, which integrates digital capabilities across customer management, product development, and store operations.
Company Background: Founded in 2017, Luckin Coffee has grown into a dominant player in the Chinese market, boasting over 36,000 stores globally as of June. The company previously faced a delisting from the Nasdaq following an accounting scandal in 2020 and is currently traded on the over-the-counter (OTC) market.
Future Outlook: Mubadala intends to work closely with Luckin's management team to support the company's next phase of growth, both within China and in international markets. The fund remains optimistic about long-term investment opportunities within the Chinese consumer sector.