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.

Shahu I was the fifth Chhatrapati of the Maratha Empire founded by his grandfather, Shivaji I. He was born into the Bhonsle family, and was the son of Sambhaji I and Yesubai. At a young age, he was taken into custody at the Siege of Raigad by Mughal emperor Aurangzeb, and held captive by the Mughals. He was released from captivity after the death of Aurangzeb in the hope of engineering an internecine struggle among the Maratha factions of Tarabai and Shahu. Raja Shahu emerged victorious in the bloody Battle of Khed and was crowned as Chhatrapati.