Proposition: Either $f$ is the identity, or there exist integers $k>1$ and $N\geq 1$ such that
$$f(n)= \begin{cases}n \text{ if } n<N\\kn \text{ if } n\geq N\end{cases}.$$
Proof:
We can check that all such $f$ satisfy the conditions (they are positive-integer valued, strictly increasing, and satisfy the functional equation).
We want to show that they are the only ones.
Let $g(n)=\frac{f(n)}{n}$ (on the same domain $\mathbb{N}^*$). The equation says $g(n)=g(f(n))$.
From monotonicity, $g(n)\geq 1$ for all $n$. Let $N_1$ be the minimal $n$ such that $g(n)>1$. We want to prove that $g(n)=g(N_1)=k$ for all $n\geq N_1$. This is equivalent to the statement in the proposition.
Now the proof.
Lemma 1: Suppose for some $N$ we have $g(N)=k>1$, i.e. $f(N)=kN$. Then $f(k^pN)=k^{p+1}N$ for all powers $p\geq 0$.
Proof of Lemma 1: By induction on $p$. The base case is one of the assumptions, and the induction step is given by applying $g(f(n))=g(n)$ to $n=k^pN$. QED
We note that this implies that $k^pN$ is an integer for all $p$, and so $k$ is an integer.
We put $g(N_1)=k_1>1$. Suppose there exists $N_2>N_1$ with $g(N_2)=k_2\neq k_1$. Firstly, by monotonicity of $f$ and the fact that $f(N_1)=k_1N_1>N_1$ with strict inequality, we get $f(N_2)>N_2$ (strictly) so $k_2>1$. Now by Lemma 1, $f(k_1^{p_1}N_1)=k_1^{p+1}N_1$ and $f(k_2^{p_2}N_2)=k_2^{p+1}N_2$ for all non-negative powers $p_1$ and $p_2$. But if $k_1\neq k_2$ this will eventually contradict monotonicity.
Lemma 2: Suppose $k_2>k_1>1$ and $N_1, N_2$ some positive integers. Then we there exist $p_1, p_2$ such that $N_1 k_1^{p_1}\geq N_2 k_2^{p_2}$ but $N_1 k_1^{p_1+1}<N_2 k_2^{p_2+1}$.
We postpone the proof to observe that Lemma 2 implies the proposition. Indeed, it says that if there exists $N_2, N_2$ with $g(N_1)=k_1>1$, $g(N_2)=k_2>1$ with $k_1\neq k_2$ then after possibly swapping indexes 1 and 2, we find ourselves in the situation of Lemma 2, which produces two numbers ($x=N_1 k_1^{p_1}$ and $y=N_2 k_2^{p_2}$) with $x\geq y$, and $f(x)<f(y)$, contradicting monotonicity of $f$.
This completes the proof modulo proving Lemma 2.
Proof of Lemma 2: Taking logs this is equivalent to
$$\ln N_1 +p_1 \ln k_1 \geq \ln N_2 +p_2 \ln k_2$$
but
$$\ln N_1 +(p_1+1) \ln k_1 <\ln N_2 +(p_2+1) \ln k_2$$
or
$$ p_1 \ln k_1 -p_2 \ln k_2\geq \ln N_2-\ln N_1>(p_1 \ln k_1 -p_2 \ln k_2)+(\ln k_1-\ln k_2)$$
There are two cases to consider:
$\ln k_1$ and $\ln k_2$ are rationally dependent, $\ln k_1=\frac{m}{n}\ln k_2$ for some reduced fraction $\frac{m}{n}$. Then the set of combinations $p_1\ln k_1-p_2 \ln k_2$ with $p_1, p_2\geq 0$ is the same as the set of combinations $p_1\ln k_1-p_2 \ln k_2$ with $p_1, p_2$ arbitrary integers, and by Euclid's algorithm, is a set of multiples of $\Delta=\frac{1}{n}\ln k_2$. Any number $x$, including the number $x=\ln N_2-\ln N_1$, falls between two consecutive such multiples: $ (l-1) \Delta< x\leq l \Delta$, and so there are positive $p_1,p_2$ with
$p_1\ln k_1-p_2\ln k_2 -(\frac{1}{n}\ln k_2) < x\leq p_1\ln k_1-p_2\ln k_2$ which together with $(\frac{1}{n}\ln k_2)<\ln k_2-\ln k_1$ yields what we want.
$\ln k_1$ and $\ln k_2$ are rationally independent. Then the set of combinations $p_1\ln k_1-p_2\ln k_2$ with non-negative $p_1, p_2$ is dense in the real numbers (this is a "standard fact"; by rescaling it's equivalent to $\{na\}$ being dense in $[0,1]$ for irrational $a$, see, for example, For an irrational number $a$ the fractional part of $na$ for $n\in\mathbb N$ is dense in $[0,1]$). Thus we can find such a combination between $x=\ln N_2-\ln N_1$ and $x+\ln k_2-\ln k_1$, which also gives what we want.