Mubadala invests in Luckin Coffee

Mubadala Investment Company agreed to take a significant minority stake in Luckin Coffee, investing alongside Centurium Capital, which remained the controlling shareholder. Completion was subject to customary closing conditions. Founded in 2017, Luckin Coffee operates a coffee chain built around mobile ordering: customers place and pay for their orders through its app, then collect them from stores designed mainly for pick-up rather than for sitting in, which keeps its premises small and its prices below those of traditional coffee shops. It launches new drinks at a rapid pace and uses the data its app generates to decide what to sell, where to open and how to price. As at 30 June 2026 it operated more than 36,000 stores worldwide, and its cumulative customer count approached 500 million. Mubadala based its investment on the growth of coffee consumption in China, where more consumers are turning to freshly brewed coffee and existing drinkers are consuming it more often, and on the company’s position in that market. It intended to support the chain’s development in China and abroad, continuing a long-standing relationship with Centurium Capital. Skadden, Arps, Slate, Meagher & Flom and Kirkland & Ellis advised on the transaction.