Even as companies struggle for funding, and go into cash-conserving mode to survive the frosty market conditions, PhonePe is set to defy the prevailing funding winter, and how.

Its latest fundraise is expected to see new investor General Atlantic chip in with $250 million, while the remaining $750 million is expected to come from American retail giant Walmart, sources said. PhonePe is majority-owned by Indian e-commerce major Flipkart, which in turn, is majority owned by Walmart.

The deal is a complex one, with the primary investment only happening once PhonePe  finishes flipping its base from Singapore to India. This marks one of the first such moves by a unicorn—a significant development for the Indian startup ecosystem.

Before the flip can complete, however, PhonePe’s investors must agree to the move and the significant tax liability that will result from it.

As a company where Flipkart owns a majority stake, Flipkart’s investors must individually choose to either agree to the tax implications of the switch or make a secondary exit.

"For a lot of smaller stakeholders who don't want in, a secondary transaction will happen first," said a person directly aware of the deal. A PhonePe spokesperson declined to comment.

This funding round stands out for a few reasons: