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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.

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