Luckin Coffee, flush with investor cash, weighs entry into Middle East markets
Luckin Coffee is weighing an entry into Gulf markets as the coffee chain presses on with overseas expansion.
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With Centurium's backing, Luckin has engineered a sharp
With Centurium's backing, Luckin has engineered a sharp turnaround and surpassed Starbucks as China's biggest coffee chain by sales.
The coffee chain's turnaround has drawn a lengthening
The coffee chain's turnaround has drawn a lengthening list of institutional backers, including Abu Dhabi's Mubadala and Singapore's Temasek.
SINGAPORE — Luckin Coffee is once again weighing
SINGAPORE — Luckin Coffee is once again weighing an entry into Persian Gulf markets after securing backing from Abu Dhabi's sovereign wealth fund Mubadala.
Luckin's senior management is considering expanding into the
Luckin's senior management is considering expanding into the Gulf countries, Chairman David Li told CNBC in an exclusive interview on Monday. Li is the co-founder and CEO of private equity firm Centurium Capital, the controlling shareholder of China-based Luckin.
"There are other markets we are currently looking
"There are other markets we are currently looking at [and] potentially entering into regions like Gulf countries," Li said.
Mubadala has become a direct investor in Luckin
Mubadala has become a direct investor in Luckin after a $1 billion joint investment with Centurium in early September, with neither side disclosing the respective stake size. The $385 billion sovereign fund has invested more than $20 billion in China, including into e-commerce giant Shein and real estate developer Dalian Wanda's shopping malls business.
Luckin had in 2019 planned to open shops
Luckin had in 2019 planned to open shops in the Middle East and India, but that never came to fruition. The company was embroiled in an accounting scandal six years ago that found its former executives had fabricated hundreds of millions of dollars in sales, leading to its filing for bankruptcy in the U.S., delisting from Nasdaq, and feeding into broadening U.S. scrutiny of Chinese companies' stock listings.
The appeal of expanding into the Gulf lies
The appeal of expanding into the Gulf lies in stable, high-frequency coffee demand and a growing preference for low-sugar, health-oriented drinks, Luckin CEO Jinyi Guo told CNBC separately on Monday
With Centurium's backing, Luckin has engineered a sharp
With Centurium's backing, Luckin has engineered a sharp turnaround and surpassed Starbucks as China's biggest coffee chain by sales. The Beijing-based private equity firm has also been pushing further into coffee after acquiring premium coffee brand Blue Bottle Coffee in April from Nestlé for reportedly less than $400 million.
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Luckin Coffee, flush with investor cash, weighs entry into Middle East markets
Luckin Coffee is weighing an entry into Gulf markets as the coffee chain presses on with overseas expansion.
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Source: CNBC