He was adopted by his uncle Damaji I Gaekwad (died 1721), who had been given the hereditary title of Shamsher Bahadur by Chhattrapati Shahu for bravery in a battle.

[2][3] The Gaekwads were originally lieutenants of the Dabhade family, the Maratha chiefs of Gujarat and holders of the senapati (commander-in-chief) title.

The Peshwa allowed the Dabhades to retain their territories in Gujarat, on the condition that they would remit half of their revenues to the Maratha Chhatrapati's treasury.

Pilaji continued to serve Yashwant Rao, and was granted the title Sena Khas Khel by the Peshwa in addition to Shamsher Bahadur.

He was defeated and arrested, but later, the Peshwa appointed him as the Maratha chief of Gujarat, replacing the Dabhades.