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 US$1 billion(HK$7.8 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.
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 US coffee peer Starbucks 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.
Last month, Luckin reported second-quarter net revenue of 15.9 billion yuan (US$2.37 billion).
Mubadala is one of the world's biggest sovereign wealth funds, with assets under management of US$385 billion at the end of last year.
Reuters
