In following links on answers, I came across this question, which says that Crookshanks is a half-Kneazle.
In the HP wikia, it's stated that
Some wizards and witches make a living by breeding Kneazles or part-Kneazles. Arabella Figg, a Squib, makes her living in this manner, which would explain why she has so many cats.
Is there any canon evidence that Figg bred Crookshanks?
There's no evidence to support this hypothesis other than a quote from JKRs old site that mentions that Arabella Figg made a decent living cross-breeding cat/kneazles for sale.
Arabella Figg does a roaring trade in cross-bred cats and Kneazles, and if you don‘t know what a Kneazle is yet, shame on you.
It's certainly possible that some of these were sold to Magical Menagerie since it appears to be the only magical animal shop in Diagon Alley.
