Luckin Coffee’s Accounting Scandal Thwarts Backer’s $2.5 Billion Fund

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Luckin Coffee’s Accounting Scandal Thwarts Backer’s $2.5 Billion Fund
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The accounting mess at China’s Luckin Coffee has forced one if its top backers to put off its fundraising plans

The accounting mess at China’s Luckin Coffee Inc. has forced one of its top backers to put off its fundraising plans.

Centurium Capital, a three-year-old Chinese private-equity firm that has a sizable investment in Luckin, has put on hold plans to raise a second fund with a target size of $2.5 billion, according to people familiar with the matter. Its decision comes after the coffee chain’s revelation that employees fabricated much of its 2019 sales.

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