Peshwa was second highest office in the Maratha Confederacy, next in rank and prestige only to that of the Chhatrapati. Initially serving as the appointed prime minister in the Maratha empire, the office became hereditary after the death of Shahu in 1749. During the reign of Shahu, the office of Peshwa grew in power and the Peshwas came to be the de facto rulers of the Maratha empire. However following the defeat of the Marathas in 1761, the office of the Peshwa became titular as well and from that point onwards served as the ceremonial head of the Confederacy underneath the Chhatrapati.

The Maratha Empire, also referred to as the Maratha Confederacy, was an early modern Indian empire and later a confederation that controlled large portions of the Indian Subcontinent in the 18th century. Maratha rule formally began in 1674 with the coronation of Shivaji of the Bhonsle dynasty as the Chhatrapati. Although Shivaji came from the Maratha caste, the Maratha empire also included warriors, administrators, and other nobles from the Maratha and several other castes from what is known today as Maharashtra. The Maratha Kingdom was expanded into a full-fledged Empire in the 18th Century under the leadership of Peshwa Bajirao I.