Abu Dhabi sovereign investor Mubadala Investment Company has agreed to make a minority investment in Luckin Coffee alongside Centurium Capital, the Chinese coffee chain's controlling shareholder, in a transaction valued at about $1 billion, Mubadala said on Sept 10.

As of June 30, Luckin operated more than 36,000 stores globally, while its cumulative number of transacting customers was approaching 500 million, according to Mubadala.

Founded in 2017 and headquartered in Xiamen's Siming district, Luckin Coffee has grown into one of China's largest coffee chains by store count. The company operates a technology-driven retail model that integrates digital customer engagement, store operations, and supply-chain management.

Centurium Capital, a private equity firm focused on investments in China's consumer, healthcare and technology sectors, invested in Luckin in 2018 and later became its controlling shareholder.

The transaction remains subject to customary closing conditions.