Amazon may enter the Indian food delivery market as soon as next month, according to a report on TechCrunch. The e-commerce giant has been testing its food delivery service with select restaurant partners in Bangalore, TechCrunch quoted an unnamed person familiar with the matter as saying. The company has been working on its food delivery business for several quarters and was previously aiming to launch it during the festival of Diwali, the report said.

Amazon's entry into the food delivery market will create new challenges for Prosus Ventures-backed Swiggy, and Zomato, a 10-year-old startup that acquired Uber's Eats business in India for about $180 million in January, the report said.

Both the startups, having raised more than $2 billion together, are still not profitable, losing more than $15 million each month to acquire new customers and sustain existing ones, it added.

In recent years, both Swiggy and Zomato have expanded beyond food delivery businesses. Swiggy today runs what it claims to be the largest cloud kitchen network in India, and has also expanded to delivery of just about any item (not just food), the TechCrunch report said.

Zomato has been working on “Project Kisan,” to procure raw material directly from farmers and fishermen in an attempt to assume control of the supply of items to restaurants, it added.

Amazon's move comes as rival Flipkart is moving into the food retail business. Flipkart, which sold a majority stake in the company to Walmart for $16 billion last year, has registered an entity called “Flipkart Farmermart Pvt Ltd” that will focus on food retail, TechCrunch quoted Kalyan Krishnamurthy, Flipkart Group CEO, as saying in a statement in October. Flipkart has already committed $258 million to the new venture, it added.