Early observations of transient explosions can provide vital clues to their progenitor origins. In this paper, we present the nearby Type Iax (02cx-like) supernova (SN), SN 2020udy, that was discovered within hours (∼7 h) of estimated first light. An extensive data set of ultra-violet, optical, and near-infrared observations was obtained, covering out to ∼150 d after explosion. SN 2020udy peaked at -17.86 ± 0.43 mag in the r band and evolved similarly to other 'luminous' SNe Iax, such as SNe 2005hk and 2012Z. Its well-sampled early light curve allows strict limits on companion interaction to be placed. Main-sequence companion stars with masses of 2 and 6 M _⊙ are ruled out at all viewing angles, while a helium-star companion is allowed from a narrow range of angles (140-180° away from the companion). The spectra and light curves of SN 2020udy are in good agreement with those of the 'N5def' deflagration model of a near Chandrasekhar-mass carbon-oxygen white dwarf. However, as has been seen in previous studies of similar luminosity events, SN 2020udy evolves slower than the model. Broad-band linear polarization measurements taken at and after peak are consistent with no polarization, in agreement with the predictions of the companion-star configuration from the early light-curve measurements. The host galaxy environment is low metallicity and is consistent with a young stellar population. Overall, we find the most plausible explosion scenario to be the incomplete disruption of a CO white dwarf near the Chandrasekhar-mass limit, with a helium-star companion.