Abu Dhabi's Mubadala to invest $1 billion in China's Luckin Coffee
Luckin’s scale and turnaround
Xiamen-based Luckin was founded in 2017, operates over 36,000 stores globally, and had a cumulative number of transacting customers approaching 500 million as of June 30.
Luckin positions itself as a home-grown challenger to U.S. coffee peer Starbucks SBUX.O but almost collapsed in 2020 after an accounting fraud.
After changes in ownership and management, as well as paying millions of dollars in fines, Luckin rebuilt itself and has emerged as one of China's biggest coffee chains.
Recent results and Mubadala profile
Last month, Luckin reported second-quarter net revenue of 15.9 billion yuan ($2.37 billion).
Mubadala is one of the world's biggest sovereign wealth funds, with assets under management of $385 billion at the end of last year.
($1 = 6.7072 Chinese yuan renminbi)
Mubadala agrees to invest up to $1 billion in Luckin Coffee
DUBAI, Sept. 10 (Reuters) - Abu Dhabi wealth fund Mubadala Investment Company on Thursday said it has agreed to invest in Chinese coffee chain Luckin Coffee to the value of $1 billion.
"We continue to see compelling long-term opportunities in China’s consumer sector," said Mubadala head of private equity in Asia, Mohamed Albadr.
Mubadala did not disclose details such as the size of its stake after investment, which is subject to customary closing conditions.
