In the late 1950s Portuguese shipping company Empresa Insulana de Navegação began to plan a running-mate for its popular but ageing steamship Lima on the Lisbon – Madeira route.

She was delivered to Insulana de Navegação in October, and began her maiden voyage from Lisbon to Madeira via Ponta Delgada, Azores on November 4.

From 1973 to 1974, her routes varied, sailing from Dover, United Kingdom and Zeebrugge, Belgium down to the Azores, Madeira, the Canary Islands, and Cape Verde during the summer months, shifting to Rio de Janeiro for cruises along the South American coast during the winter.

Having undergone extensive work in 2010, to comply with SOLAS 2010, Funchal went to a Lisbon Shipyard in February 2011 for a lengthy refit, which included changes to its power plant as well as passenger and crew cabins and public lounges.

In early 2013 a Portuguese entrepreneur Rui Alegre purchased Funchal, as well as Princess Danae, Arion and Athena, to serve the newly-formed Portuscale Cruises.

During 2013, Funchal was extensively refurbished in Lisbon's Naval Rocha shipyards, being upgraded to a four-star vessel, at a cost of about 10 million euros.

On 3 September 2013, with the issues resolved, and all inspections made and certifications granted, Funchal left Gothenburg harbour and restarted her cruise, heading to Scotland.

According to industry sources, the Funchal was to be towed to Liverpool as soon as new owners Signature Living made the final payment on the vessel.

Pierce also bought the 75 year-old Astoria, docked in Rotterdam, which was also to be transferred to Lisbon for refurbishing and naval certificates, with eventual plans to travel to Funchal, Madeira.