Your undergrad CGPA reflects your academic rigour, which is an important factor in B-school applications, as an MBA is an academic course. For top schools like M7s, it'd reduce your chances of admission, as you'd be competing with candidates who have a very good academic track record; however, there are various ways to offset a low undergrad CGPA.
You can offset a low GPA by having a high GMAT/GRE score or demonstrating strong analytical ability at work and highlighting your career progression and leadership impact. You can also take graded courses offered by top B-schools or created by top B-school professors, and if you get a good grade in them, you can mention it in your applications, which would complement your academic rigour.
You can also justify/address the GPA in the optional essay by explaining the reason behind it (for example, if you faced any medical issue, or some personal life challenge, which is also in line with trends in your semester/term GPAs, then you can mention it in the optional essay).
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