Funchal, population approx. 110,000 (1991), is the capital of the Madeira Islands of Portugal. It was founded by João Gonçalves Zarco in 1421 and was elevated to city by King Manuel I in 1508.

In the 16th century Funchal was important as a stopping place between the Indies and the New World, and was known as a wealthy place. It was also the port for Madeiran sugar and wine.

The city is named after fennel, which grows on the island.

Postage stamps

Between 1892 and 1905, Portugal issued postage stamps inscribed "Funchal", but then reverted to the stamps of Madeira.