Abu Dhabi sovereign wealth fund Mubadala Investment Company has said it will make a significant minority investment in Chinese coffee chain Luckin Coffee alongside its controlling shareholder Centurium Capital, in a deal worth about $1 billion.
The companies did not disclose how much Mubadala is investing, the size of the stake it will acquire or the valuation of Luckin implied by the transaction.
The investment comes as Mubadala bets on confidence in China’s consumer sector with demand for freshly brewed coffee continuing to grow in the country, Mubadala said in a statement on Thursday.
The transaction remains subject to customary closing conditions, it added.
“We continue to see compelling long-term opportunities in China’s consumer sector,” said Mohamed Albadr, head of Asia, Private Equity at Mubadala.
Luckin Coffee has developed a technology-driven retail model that uses digital customer engagement, data and rapid product development to cater to changing consumer preferences, Mr Albadr said.
“Building on our longstanding partnership with Centurium, we look forward to working alongside Luckin Coffee’s management team to support the company’s next phase of growth in China and internationally,” he added.
The deal deepens Mubadala's exposure to China's consumer sector as the Abu Dhabi sovereign investor expands its portfolio across Asia. It also gives Mubadala exposure to one of China's largest coffee chains, which has rapidly expanded its store network and customer base.
The coffee market in China is expected to reach a projected revenue of $5.36 billion by 2033, according to Grand View Research, with the market projected to grow at compound annual rate of 6.4 per cent from 2026 to 2033.
In terms of revenue, China accounted for 1.3 per cent of the global coffee market in 2025, the market research firm’s data shows.
Michael Chen, partner at private equity investment firm Centurium Capital, said Mubadala’s sector knowledge, global perspective and network would support Luckin Coffee’s continued growth and innovation.
Founded in 2017, Xiamen-based Luckin Coffee has become one of China’s largest coffee chains, the statement said. It combines a large store network with digital ordering and customer engagement, product innovation and an integrated supply chain.
As of June 30, the company operated more than 36,000 stores globally, while its cumulative number of transacting customers was approaching 500 million, according to the statement.
Luckin Coffee has also been expanding outside its home market, with operations in markets including Singapore, Malaysia and the US.
Mubadala, meanwhile, has been expanding its investments across Asia, including in China’s consumer and technology sectors, as part of its broader global investment strategy. The sovereign investor’s $385 billion portfolio spans six continents with interests in multiple sectors and asset classes.
Since entering China in 2015, Mubadala has been making strategic investments across multiple sectors and asset classes.
Mubadala said its investment strategy in China has evolved from entering the market through the $10 billion China-UAE Co-operation Fund in 2015 to making direct investments from 2019 and leading or co-leading investments from 2021. Since 2024, it has been evaluating further direct investments targeting significant minority, buyout and late-stage opportunities.
China now “anchors” Mubadala’s Asia strategy, with consumer industries among its areas of focus alongside advanced manufacturing and healthcare, Mubadala's managing director and group chief executive Khaldoon Al Mubarak said in his 2026 letter to partners.
Mubadala said on its website that its investment strategy in China allows it to adopt innovative approaches and capitalise on emerging opportunities that align with the dynamics of the country’s market and investment climate.
