Abu Dhabi sovereign investor Mubadala Investment Co. has made a $1 billion minority investment in Chinese coffee chain Luckin Coffee, according to an announcement.
Mubadala joined Luckin’s controlling shareholder Centurium Capital in the transaction, which highlights the investor’s optimism about long-term opportunities in China’s consumer sector, according to the report.
Founded in 2017, Luckin Coffee is China’s largest coffee chain by store count and has built its business around mobile ordering, digital technology, and a rapidly expanding store network. The company has also begun expanding overseas as it builds on its recovery following a 2020 accounting scandal in which it was found to have fabricated its books.
As of June 30, 2026, Luckin operates more than 36,000 stores worldwide and has served nearly 500 million customers.
In the fourth quarter of 2025, the Xiamen-based coffee chain reported a non-GAAP operating profit of 963.8 million yuan ($137.6 million), down from 1.1 billion yuan in the same period of 2024, on revenue of 12.8 billion yuan, up 32.9% year-on-year, according to its earnings report.
Mubadala’s investment comes as the sovereign wealth fund expands its global capital deployment.
“We continue to see compelling long-term opportunities in China’s consumer sector,” said Mohamed Albadr, Head of Asia, Private Equity at Mubadala in the statement. “Luckin Coffee has built a differentiated, technology-enabled business with data embedded across customer engagement, product development and store operations. This combination of scale, digital capabilities and rapid product innovation has enabled the Company to respond to evolving consumer preferences efficiently and at pace.”
Mubadala’s assets under management rose about 16.7% to 1.4 trillion dirhams ($381 billion) in 2025 from 1.2 trillion dirhams a year earlier.
In Asia, Mubadala acquired a 30% stake in Asian pallet pooling firm Loscam International, marking its first industrial investment in the region. In Europe, it committed €300 million to Rezolv Energy, supporting renewable power expansion.
In financial services, Mubadala Capital completed the C$12.1 billion take-private of CI Financial, further expanding its global asset management platform.
