Mubadala Plans Minority Stake in Luckin in $1 Billion Deal

Abu Dhabi state-owned investor Mubadala Funding Firm introduced an settlement to take a major minority stake in Chinese language espresso big Luckin Espresso as a part of a transaction valued at roughly US$1 billion.

Mubadala is investing alongside Luckin controlling shareholder Centurium Capital, the China-focused non-public fairness agency that took management of Luckin in 2022 amid Luckin’s rebound from a serious accounting scandal. The businesses didn’t disclose Mubadala’s particular person funding quantity or ensuing possession share. The transaction stays topic to customary closing circumstances.

The deliberate funding comes as Luckin continues its extraordinary retail development, together with getting into the U.S. market, whereas pouring tons of of hundreds of thousands of {dollars} into espresso roasting, processing and procurement.

“We proceed to see compelling long-term alternatives in China’s shopper sector,” Mubadala Head of Asia Non-public Fairness Mohamed Albadr mentioned within the announcement. “Luckin Espresso has constructed a differentiated, technology-enabled enterprise with knowledge embedded throughout buyer engagement, product improvement and retailer operations.”

Mubadala manages roughly $385 billion in belongings on behalf of the federal government of Abu Dhabi, the capital metropolis of the United Arab Emirates. Centurium says it manages roughly $7 billion in belongings.

From Scandal to 36,000 Shops

Based in 2017, Luckin turned one of many fastest-growing espresso chains in China earlier than an accounting scandal almost derailed the corporate.

An inside investigation in 2020 uncovered fabricated transactions, and the U.S. Securities and Trade Fee later alleged that Luckin deliberately fabricated greater than $300 million in retail gross sales. Luckin was delisted from the Nasdaq and later agreed to pay $180 million to settle SEC accounting fraud costs with out admitting or denying the allegations.

Centurium took management of the corporate in 2022, the identical yr Luckin emerged from its monetary restructuring.

Since then, the corporate has returned to fast enlargement. Luckin ended 2025 with 31,048 shops after including greater than 8,700 areas throughout the yr. By June 30, the corporate reported 36,310 shops, together with 23,734 company-operated areas and 12,576 shops working by way of a partnership mannequin.

Second-quarter income reached RMB15.9 billion ($2.34 billion), up 28.5% from a yr earlier, whereas common month-to-month transacting clients reached 112.7 million, in keeping with the corporate’s printed studies. 

Luckin has additionally begun extending that footprint past China. After getting into Singapore and Malaysia, the corporate made its U.S. debut in New York Metropolis in 2025. DCN lined the U.S. launch final yr.

Betting Massive on Espresso

Luckin’s development has more and more prolonged past retail shops and into espresso manufacturing infrastructure.

The corporate opened a big roasting facility in Kunshan, China, in 2024 following an funding of roughly $120 million. Earlier this yr, Luckin opened an excellent bigger roasting advanced in Qingdao, representing an funding of roughly $415 million.

Luckin mentioned the Qingdao plant has annual roasting capability exceeding 55,000 metric tons. Together with present vegetation and one other giant facility underneath development in Xiamen, Luckin has mentioned its roasting community will finally exceed 155,000 metric tons of annual capability.

The corporate is making equally giant commitments to inexperienced espresso. In late 2024, Luckin signed an settlement with Brazilian commerce company ApexBrasil outlining plans to buy 240,000 metric tons of Brazilian inexperienced espresso over 5 years.

Mubadala’s deliberate funding additionally comes as Centurium expands its pursuits elsewhere within the international espresso enterprise. In April, Nestlé confirmed that it had agreed to promote Blue Bottle Espresso to Centurium, and Nestlé mentioned in July that the deal was accomplished throughout the first half of 2026. Monetary phrases weren’t disclosed.

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