What happened Shares of Jumia Technologies (NYSE: JMIA) were pulling back today after the African e-commerce company filed a secondary stock offering and as high-priced tech stocks pulled back broadly as treasury yields rose, weighing on growth stock valuations. As of 12:50 p.m. EDT, Jumia shares were down 13.5%, while the Nasdaq Composite was off 1.5%. Image source: Jumia. So what In a filing this morning, Jumia said it would sell nearly 9 million American depositary shares, which are valued at close to $400 million at the current stock price. That would dilute current shareholders by about 10%. Jumia said the proceeds would be used for general corporate purposes. Jumia, the leading e-commerce company in Africa, is still in the cash-burning stage as it is building out infrastructure in a number of countries in Africa, posting a free-cash-flow loss of 100 million euros last year. The company has been pivoting away from a first-party direct-seller model to a marketplace one, which has led to a decline in revenue but has also narrowed losses. Jumia has made getting to breakeven its primary goal. In 2020, Jumia's gross profit rose by 22% to 92.8 million euros, and it narrowed its adjusted EBITDA loss by 35% to 119.6 million euros. However, revenue declined by 13% to 139.6 million, showing the company is still deeply unprofitable. Now what Jumia's stock price has soared over the last year as e-commerce stocks have caught fire with investors due to the impact of the pandemic. However, Jumia still has a lot of investment ahead of it as Africa has been mostly ignored by larger e-commerce companies due to a lack of infrastructure. That means it will likely take years for the business to scale. However, if it's successful the stock has a lot of upside potential as its market cap is only about $4 billion. 10 stocks we like better than Jumia Technologies AG-ADRWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Jumia Technologies AG-ADR wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source