The 25-year-old died in hospital the day after he was stretchered from the ring at the end of a fifth-round loss to Dale Evans in Glasgow on Thursday September 29.
The young father, from Dundee, was diagnosed with severe bleeding and swelling to his brain but survived for 12 hours after being removed from life support at the Queen Elizabeth University Hospital in Glasgow.
His family called for the funeral at St Andrews Cathedral in his home town to be a “celebration of his life” and asked mourners not to wear black or red, as Towell did not like the colour.
Many friends and members of his boxing club arrived at the funeral wearing white T-shirts with a picture of Towell celebrating a win on them, with “Iron Mike Towell” written on the back.
Others wore hoodies with messages such as “Dundee’s champ”, “Team Towell” and “the legend lives on”.
Members of the Stirling gym where Towell trained also wore T-shirts with “1314” on them, in reference to the name of the complex.
The hearse arrived at the cathedral accompanied by floral tributes reading “daddy” and “Iron Mike”.
Undertakers escorted the coffin into the service with a floral crucifix sitting on top.
Tributes poured in for Towell from famous boxers in the days after his death.
Former world champion Ricky Hatton set up an online fundraiser to support Towell’s family which has surpassed £45,000, while promoter Eddie Hearn pledged almost £7,500 as a result of ticket sales from Ricky Burns’s fight in Glasgow a week after the death.
A mural with boxing gloves emblazoned with “Mike” has also been created in Dundee by artist Syke.
A statement from the Towell family released before the funeral said: ‘’We will always mourn losing him but we hope everyone takes time to remember the enjoyment and the smiles he brought into their lives.”
Towell had been undefeated going into the bout - which was an eliminator for the British welterweight title - with 11 previous wins and one draw on his professional record.
It was revealed following his death that Towell had been complaining of headaches in the run-up to the fight, but his management said they were not aware of any issues.