The Wigan MP is the fourth contender to officially declare her bid in the race, alongside Birmingham MP Jess Phillips, Shadow First Secretary of State Emily Thornberry and Shadow Minister for Sustainable Economics Clive Lewis, reports metro.co.uk.
She announced her bid on Friday in her local constituency paper - a move symbolic of her promise to change the perception of Labour as London-centric.
Nandy wrote that a future Labour government should give "power and resources" to "every town, city, region and nation in the UK".
"We must leave behind the paternalism of the past and give people the ability to deliver change for themselves.
"I am determined to defeat (Prime Minister) Boris Johnson in order to lead the compassionate, radical, dynamic government that I firmly believe you want and deserve," she added.
Labour suffered its worst defeat at the polls in over 70 years in the December 12 election, as many northern heartlands turned blue (Conservative) for the first time.
Nandy's announcement came hours after Philips announced her bid to replace incumbent leader Jeremy Corbyn, in which the Birmingham MP called for a "different kind of leader", metro.co.uk reported.
Shadow Brexit Secretary Keir Starmer and Shadow Business Secretary Rebecca Long-Bailey were also believed to be considering a leadership bid.
A timetable for the leadership election - and any rule changes - is set to be decided by the party's ruling National Executive Committee (NEC) on January 6.
( With inputs from IANS )