Abu Dhabi sovereign investor Mubadala has agreed to make a significant minority investment in Luckin Coffee, bringing a new institutional backer into the Chinese coffee chain as it continues to expand at home and test its model overseas.
The transaction, announced on September 10 and valued at around USD 1 billion, will see Mubadala invest alongside Centurium Capital, Luckin’s controlling shareholder.
Mubadala framed the deal primarily as a bet on China’s consumer sector, where coffee consumption continues to rise. But it also pointed to Luckin’s international prospects, saying it would work with management to support the company’s “next phase of growth in China and internationally.”
That international dimension is notable given where Luckin stands today.
Founded in 2017, Luckin has grown into one of China’s largest coffee chains, with 36,310 stores globally as of June 30. Its cumulative number of transacting customers was approaching 500 million.
Growth remains strong. Luckin reported RMB 15.9 billion (USD 2.4 billion) in revenue for the second quarter of 2026, up 28.5% year-on-year. Average monthly transacting customers rose 22.9% to a record 112.7 million, while operating income increased 22% to RMB 2.1 billion (USD 312.7 million).
Much of that growth continues to be supported by network expansion. Luckin added 2,714 net new stores during the quarter, including 2,668 in China.
Growth at existing stores, however, has become more challenging. Same-store sales at self-operated stores fell 5.3% year-on-year in the second quarter, compared with growth of 13.8% a year earlier. Luckin attributed the decline primarily to a difficult comparison base created by elevated food delivery subsidies during the same period last year.
Its operating margin also slipped to 13.4% from 14.1%, even as operating income increased.
The figures point to a business that is still expanding rapidly, but one where adding stores and customers remains an important driver of that growth.
Mubadala, for its part, highlighted more than Luckin’s scale. Mohamed Albadr, head of Asia for private equity at Mubadala, cited the company’s technology-enabled business model, digital capabilities and ability to develop products quickly as reasons for the investment.
Those capabilities underpin a model Luckin is now trying to replicate beyond China. The company began expanding overseas in 2023, starting in Singapore, and has since entered Malaysia and the US. Its international network remains small relative to its Chinese footprint, but its approach offers an early indication of how Luckin is adapting its model to different markets.
In the US, Luckin opened its first two stores in New York in July 2025. The company has described the market as being at an early stage of exploration, using its initial stores to test consumer responses to its brand positioning, digital ordering process, product range and pricing.
It has also localized parts of its offering. Its US menu combines products popular in China, including its coconut latte, with locally tailored drinks, while its app supports payment services such as Apple Pay and PayPal.
Luckin has taken a different approach in Southeast Asia. In Singapore, it operates stores directly, while in Malaysia it has expanded through a partnership model. By the end of the second quarter of 2025, Luckin had 63 self-operated stores in Singapore and 24 partnership stores in Malaysia.
Could the Middle East eventually become part of that strategy? There is at least some basis for considering it. Mubadala manages a USD 385 billion portfolio on behalf of the Abu Dhabi government, with investments spanning six continents. Centurium said Mubadala’s “global perspective and network” could support Luckin’s long-term development.
More significantly, the Middle East is not entirely new territory for Luckin. In July 2019, the coffee chain signed a memorandum of understanding with Kuwait Food Company Americana to establish a joint venture covering the Greater Middle East and India. At the time, Luckin described the proposed venture as its first step toward bringing its products from China to overseas markets.
Americana brought an established regional presence to the proposed partnership, with restaurant operations across markets including the UAE, Saudi Arabia, Kuwait, and Egypt.
That plan did not result in the Middle Eastern presence Luckin had envisaged. Its current international footprint instead comprises Singapore, Malaysia, and the US.
Against that history, Mubadala’s investment makes the prospect of Luckin revisiting the Middle East more noteworthy. An Abu Dhabi-based investor with a global network is taking a substantial position at the same time Luckin is working out how its model can be adapted outside China.
There is, however, little indication that a Middle East expansion is imminent. Neither Mubadala nor Luckin has announced plans to enter the region as part of the transaction, and Mubadala’s statement does not identify the UAE, Saudi Arabia or any other Middle Eastern market as a target.
Its stated investment rationale also remains centered on China. Mubadala said the deal reflects its long-term conviction in the country’s consumer sector, citing the expansion of China’s coffee market and Luckin’s ability to respond to changing consumer preferences.
Luckin, meanwhile, is still building experience in the overseas markets it has already entered. Its cautious approach in the US in particular suggests that international expansion remains a process of testing and localization rather than simply replicating its Chinese rollout abroad.
Mubadala could eventually add another dimension to that effort. Its investment gives Luckin a shareholder with an international network at a time when the coffee chain is looking beyond its home market, while Luckin’s earlier attempt to enter the Middle East provides some precedent for considering the region. For now, however, that remains a possibility rather than a plan.
Note: RMB figures are converted to USD at rates of RMB 6.72 = USD 1 based on estimates as of September 14, 2026, unless otherwise stated. USD conversions are approximate and, where appropriate, rounded for ease of reference. They may not fully match prevailing exchange rates.