I don't think it is cloud mining. You need to download a software and run it on your machine. He might actually be taking a cut of the bitcoins generated :)
Buy your own bitcoins with hard earned money https://steemit.com/bitcoins/@gokulnk/how-to-buy-bitcoins-in-india
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Its absoulutly free and you can make real bitcoin in that i am using it from last 2 months and i have sufficient amount of btc in my account..i am not saying it will make you rich in a single night nobody can do this but yes it will give you enough money in your wallet at the end of the month. If you want to check this out i will give you the link?