The settlement was founded as Villa de Deán Funes on 9 March 1875, when the Ferrocarril Central Norte from Córdoba reached the area. It received its name honouring Gregorio Funes, a writer and deacon of the Archdiocese of Córdoba who was a deputy to the Junta Grande after the May Revolution of 1810. It received a strong wave of immigration, chiefly made up of Spaniards, Italians, people from Arab countries, and Yugoslavians. The town was officially declared a city on 29 October 1929.
The city hosts the Northern Córdoba Tradition Festival annually on the first half of January.